is also a risk. And if you need to achieve your goals, risk profiling needs to be considered in this perspective.
For case 1, if the time horizon cannot be changed, you should reconsider the asset allocation and increase it towards equity. Or, you should increase your time horizon or the initial/regular investment corpus.
For case 2, you can bring in stability by increasing allocation towards fixed income. If this cannot be considered, then you can reduce the time horizon for the investments or the initial/regular investment corpus required .
You need to understand your needs and goals. The tools are enables to guide you towards the goal. If you need to tweak the tools, you should do it. But only after a thorough review and introspection. Adaptability and flexibility is required, and more so in a volatile economic environment.
The writer is founder and managing partner of Zeus WealthWays LLP