Now, investment portfolios are an in-depth topic.
My aim here is to help you choose a select few asset classes tailored to your unique situation. Keep in mind that this portfolio is designed specifically for investors in Sri Lanka, focusing on assets within Sri Lanka.
I’m going to give you a series of questions, and hopefully, by the end, I’ll break down the assets and stakes that best fit your lifestyle and goals.
Without further ado, here are the questions.
Well, there you have it—a custom portfolio tailored to your lifestyle.
I’ve tried my best to provide a portfolio curated to your goals. However, this is still just a draft! Now comes the hard part. I’ve given you a solid starting point, but it’s up to you to dive deeper, research these topics, and refine the portfolio to make it uniquely yours.
There may be situations in your life that I can’t account for—so take some time to evaluate what adjustments to the base portfolio could benefit you. If you’re happy with what you’ve got, that’s great! You can now get started by researching each investment instrument. Some, like unit trusts and stocks, require setting up specific accounts. I’ve put together guides for these in the Investment Options page – hope they help!
For those who need a little more fine-tuning—and for those curious about why you received certain assets—the breakdown below should give you a clearer picture.
Asset Allocation breakdown
The custom portfolio above can generate between 14 different asset classes. These are as follows:
- Stocks
- Dividend Stocks
- Unit Trusts
- Treasuries
- Fixed Deposits
- Real Estate
- Commercial Real Estate
- Venture Capital
- Hedge Funds
- Crypto
- Alternative Investments
- Gold
- Private Equity
- International Assets
You get a mixture of these recommended to your portfolio based on your answers.
Why was my stock allocation so high?
As you may have noticed if you asked this question , the percentage given to stocks is considerably high in this custom portfolio. Even for people who choose very low risk options , there is a small percentage of stocks in their portfolio – this was by design.
The stock market in Sri Lanka has a couple of things going for it that makes it one of the best assets to park your money long-term. As of writing (04/02/2025) , the market is in an incredibly strong position and priced very competitively compared to Sri Lanka’s neighbors. Also there’s one major benefit in parking your money on stocks- there is no capital gains tax. Yes , you heard that right. The only taxes you are exposed to in the Colombo Stock Exchange (CSE) is the 15% withholding tax on dividends and the 0.3% share transaction levy.
This fact along with solid market performance over the years make stocks one of the best assets you can invest in Sri Lanka.
The high percentage you get also comes from one of the guidelines I implemented into the program called : The 100- Age Rule .
This is a straightforward guideline where you subtract your age from 100 to see how much of a percentage stocks should have in your investment portfolio.
Why did i only get a few categories from the 14 different classes available ?
Diversification is great to have , but there are several restraints placed in the program to make the output realistic. Take for example , Real Estate. Portfolios under the size of 500k simply cannot buy any meaningful real estate in that price range.
Similar restrictions were placed on all asset classes to make the output as realistic as possible. Venture capital for example is only available to those with decently sized portfolio with very high risk tolerance as there is a 75% chance of failure.
Why is my crypto percentage very low?
Assets such as crypto are capped at a maximum of 5%, aligning with global guidelines that recommend allocations within this range.
Another reason for this low percentage is the legal gray area in which crypto operates in Sri Lanka. I cannot, in good faith, recommend that individuals invest a significant portion of their wealth into an asset class that has yet to be fully integrated into Sri Lanka’s financial system.
Closing Remarks
This post is already going a tad bit too long , so I’m gonna stop right here. If there’s any further questions regarding your portfolio please do drop me a message either through the contact page or the comments below . I would be glad to help.
You can now move on to the last step in the getting started process. There we’ll discuss how to optimize your portfolio and go over some basic investment strategies.
That’s all for this post ! Thanks for reading!