 विस्मिल लाईरख्मान्री, तो भी दुएंगे दिवान्स दिस मैंज्मेंग, आज हम बाज करेंगे रिस्क बजिटिंग, भजिटिंग का आज आपनोंने लफस कुना होगा, के आप लोगगर के भी बजिट्टिंग बनातें, नोमली कन्त्री लेवल भी बजिट्टिंग बनता है. उआपश़ा, वी दिवाड़ वेदा, तो अब आपने भी बजिटिंग तेरिने है, लेवल याज बजिटिंग बनातें, नोमली करे बनान्ई कि नहींगे अगते है. how much in bonds or in any area we have to go then we decide how much we have to invest this can be a real estate or alternate investment but this is normal to consider based on the amount we are going to invest for example if you have 100 dollars and you invest 80 in stock and 20 in bonds so you know very clearly that you have invested in your 80% portfolio stock or 20% in bonds and capital allocation we know but we don't know how much risk we are taking our risk proportionate distribution is increasing and how much risk we have taken in stock so how much risk we have taken in stock or how much risk we have taken in bonds so how much impact we have taken overall so we know the distribution of the amount so based on allocation we don't know the factors of risk so this is not sufficient for our purposes in risk budgeting investor has to first calculate what proportion of the overall portfolio risk each asset class represent that we should know in which component the risk is and then reverse calculate the proportion of each asset class so as to minimize the total portfolio risk that we have to see with our reverse calculation that how much risk we want to take in portfolio and then we see what should be the allocation between the asset classes so it's not just about spreading the amount we have to take for in the consideration that how much risk we have associated with them then how much we want to take based on that we should make the segregation this is a simple graphical representation risk budgeting is a form of portfolio where portfolio is distributed across different asset classes asset one's contribution is coming asset two's contribution is contributing so this way we have a clear understanding what each component is doing asset one's equity asset two's bond it could be any individual stocks so risk budgeting calculation with an example we will see what are the methods tools through which we will gauge there are three stages three steps which we need to know risk measurement risk attribution and risk allocation how much we are going to attribute allow it and then allocation in between the asset classes how we are going to do that these are the three steps which are involved in this risk budgeting example let's look at an example and understand how risk budgeting works we have two assets classes X and Y it can be equity and bonds or any other classes with equal weights and following five returns values we have these possible returns, avenues X and Y are avenues and allocation and if we distribute 50% then these are our portfolio expected returns which is equally distributed so it's 0.5 into the return so this is our basic positioning then we see for calculation purposes that we need to know what are the correlation factors what are the standard aviation factors which are going to capture us with the risk tool so average return you have removed standard aviation which we are very comfortable to calculate we have average returns we should calculate that correlation is given we should also know how to calculate it we have calculated the correlation in different modules but for simplicity and the main point we want to learn for that we have directly provided you with the figure weights we have and then we could come up with the portfolio returns as well as portfolio standard aviation and risk-free rate so we have added some outputs some data so that you have a clear understanding what we are talking about especially with respect to risk budgeting the portfolio return can easily be calculated there is no difficult part in it 50-50% weight we take the weights we multiply with the returns and we are going to calculate that next we calculate the standard aviation which is a major of risk to gauge the volatility for each as a class using the standard aviation formula so we calculate the correlation between the two assets correlation is a very important role because it is if you have seen the formula there is a role of correlation if correlation is more or less that will have a great impact on the overall risk calculation so we should be able to calculate the correlation factor and that needs to be applied to gauge the true risk in our portfolio so when we are applying with the correlation factor we can see the portfolio standard aviation comes to 2.775 so that's the risk we are going to take so our main objective is to minimize the risk of our portfolio and then we have a highest risk adjusted return risk budgeting we will talk further with further illustrations to have a clear understanding thank you