From Products to Purpose: Why a Personalised Investment Plan Matters 

As an investor, you’re likely to have encountered numerous investment options — from stocks and fixed deposits to mutual funds and exchange-traded funds (ETFs). But, owning numerous investment products is not the same as having an investment strategy.

When you buy a stock, you’re essentially buying a share of ownership in that company. Similarly, when you invest in a bond, you’re lending money to a company or government in exchange for periodic interest payments.

Limitation: If one company faces difficulties or a particular bond issuer defaults, your entire investment portfolio could be at risk. This makes your portfolio vulnerable to company-specific risks that could have been avoided through broader diversification.

To avoid concentration risk, many investors turn to mutual funds and exchange-traded funds (ETFs). These professionally managed vehicles pool money from multiple investors to buy a diversified range of securities, offering access to markets that may be difficult or costly for individuals to reach alone.

Limitation: Many funds focus on specific market capitalisation segments, themes or sectors, so while they provide diversification within a segment, an overall portfolio may still lack balance. More importantly, these investment vehicles are still not personalised. They don’t take into account your risk profile or investment objectives.

As investors gain experience and confidence, they often accumulate various investments across stocks, bonds, mutual funds and ETFs. Technically, this constitutes a diversified portfolio.

Limitation: However, owning multiple investment products doesn’t automatically mean you have a coherent investment strategy. While this approach is certainly better than relying on a single product, it often lacks strategic direction and purpose. The holdings may not be aligned to your risk profile or your specific investment objectives. Furthermore, managing the holdings on an ongoing basis can become increasingly complex over the period of time, making it difficult to understand how your overall portfolio is positioned or how different holdings interact with each other.

What makes up a Personalised Plan? Three key elements: 

1. Attributes: 

• Your investment objectives
• Time horizon (short-term vs long-term). 
• Risk appetite (your ability and willingness to take risk). 

2. Asset Allocation: 

• Matching your investment objectives and risk profile to the right mix of investments. 

Example: A younger investor might allocate more to equities for growth, while someone nearing retirement might prefer stability through debt or fixed income instruments. 

3. Implementation & monitoring: 

• A portfolio comprising of mutual funds representing different investment opportunities. 
• Daily monitoring and periodic rebalancing when markets or your circumstances change. 
• Continuous alignment with your investment purpose/objectives. 

Important: Investing in financial markets is inherently uncertain. There are no guarantees—but a Personalised Plan gives you the right chance to stay on track. 

Making financial choices that don’t match your risk profile or investor type means:

• You could be limiting your growth potential
• Or you’re exposed to too much market risk

Here are two examples to demonstrate the consequences:
• Example 1: A 25-year-old with no dependents invests only in bonds. Result? They miss out on growth by not including equities in their investment plan.
• Example 2: A 45-year-old saving for retirement invests heavily in stocks without considering risk tolerance. A market downturn could derail their plans. A personalised plan ensures balance and resilience. 

The fundamental difference between traditional investment approaches and a personalised investment plan from JioBlackRock combines your purpose with the right investment products in the right asset mix for you. Every investment is made with clear intention, aligned to your specific circumstances and with ongoing discipline.

An investment plan based on your investment objectives and risk appetite 
• Diversification that reduces reliance on any one product 
• Daily monitoring and one-click rebalancing 
• Analytics that help you invest with confidence. 

Approval No: 36651