How To Define Asset Allocation And Invest Smartly

Asset Allocation is the cornerstone of investing. You just cannot ignore while deploying your hard-earned money in investment avenues while you endeavour to generate wealth.

Every asset class has a risk-return trait suitable for a certain level of personal risk appetite, investment objectives, financial goals, and the time horizon to achieve them. Besides, not all asset classes move in the same direction always – some could move inverse to the another in certain time periods.

For example, when equities are witnessing a correction or have entered a bear phase, it is the other asset classes, such as debt and gold (maybe even real estate) and investment avenues therein that would help your investment clock net positive returns.

A sensible asset allocation serves as an investment strategy in itself and should not be ignored.