Model Portfolio Investing

Investors want many things — high return and low risk, low taxes, emotional stability, and some even want social status from their investments. But at their core, what investors want from their investments at a practical level is a mixture of hope for riches and freedom from poverty. There is a method to give you what you want as an investor that is simple, effective, time-tested and requires very little work on your part.
The approach to investing that gives you all of what you want is called structured investing using model portfolios. A model portfolio is a diversified system of mutual funds that are grouped together to provide an expected return with a corresponding amount of risk.

A model portfolio is an incredible way to help you get what you want as an investor. With a model portfolio, you receive:

1.  Market returns 
2.  Efficiency and effectiveness through passive investing
3. Time efficiency for you because on-going portfolio management (including re-balancing) is done for you 
4. Effectiveness because re-balancing is done regularly (studies show that re-balancing improves portfolio performance, especially when it comes to managing a portfolio's overall risk) 
5.  Consistency because a model portfolio investor does not change approaches when markets soar or dip.  

A Word About Risk and Returns

 Standard Deviation refers to how much a portfolio's return varies from its average annual return over a certain time period. The higher the number, the more ups and downs you can expect from a portfolio.As the SEBI warns, past results are no guarantee of future returns. However, standard deviation is useful because it gives us a way to quantitatively evaluate the past volatility of a portfolio.