Asset allocation still remains the most important criteria any investor should follow while starting or planning to invest. However many investors do not realize the importance of the same. We suggesting a solution or a strategy to our investors we take care of their asset allocation and financial planning.
Assets Allocation Strategies
Asset allocation is a strategy to balance risk and returns by investing in different asset classes. Historical price movements of different asset classes like equity, fixed income or debt and gold show low or negative correlation among these asset classes. Hence diversification across asset classes can greatly reduce risk and generate potential superior returns in the long term. Financial planners suggest that right asset allocation strategy is critical in achieving your financial goals.
Strategy for Asset allocation: Life cycle funds asset allocation, Age based asset allocation, Constant weight asset allocation, Tactical asset allocation, Insured asset allocation, and Dynamic asset allocation.
With asset allocation, the concept of ‘one size fits all’ does not apply. Every individual’s financial condition is different and requires a unique and different approach. In fact, an investor should regularly check their financial strategies and ensure that it align with their financial goals, risk profile and investment horizon. Remember, portfolios that have superior product selection and consistent asset allocation tend to outperform the market. If you are unsure about the optimal asset allocation to achieve your goals, you might consider seeking the services of an expert. Happy investing!
