Strategic Asset Allocation and Risk Governance (SAARG) Committee

Category: Economy / Financial Sector

  • SAARG stands for Strategic Asset Allocation and Risk Governance.
  • The committee is associated with strengthening investment strategy and risk-management frameworks for institutional investors.
  • Strategic asset allocation refers to determining the long-term allocation of investments across asset classes such as equity, debt, gold and alternative assets.
  • It aims to balance risk, return, liquidity and long-term liabilities.
  • Risk governance establishes systems for risk identification, monitoring, reporting and mitigation.
  • For UPSC, distinguish strategic asset allocation (long-term portfolio structure) from tactical asset allocation (short-term deviations based on market conditions).

Key Pointers: Strategic asset allocation → Long-term portfolio mix | Core objective → Risk-adjusted returns + risk governance.