Asset allocation plays a very important role in the success of any Investors portfolio. Proper asset allocation is the key factor which keeps an Investor as an Investor even after years. My dear readers, today I am here with the detailed discussion on various key factors to be considered for the proper asset allocation, which leads an investor to the success.
Asset allocation can be defined as an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.
In simple words, I can put it like this – Asset allocation is an investment strategy that seeks to balance risk and reward in your portfolio by spreading investments over several types of asset classes. The three main asset classes are equities, fixed-income, and cash and equivalents, and all have different levels of risk and return, so each will behave differently over time. I can call it as the primary tool for achieving an investor’s ideal balance of risk and rewards.
There is no simple formula that can find the right asset allocation for every individual. However, as a Financial Consultant, I can conclude asset allocation as one of the most important decisions that investors make. In other words, your selection of individual securities is secondary to the way you allocate your investment in stocks, bonds, and cash and equivalents, which will be the principal determinants of your investment results.
Asset-allocation mutual funds, also known as life-cycle or target-date funds are an attempt to provide investors with portfolio structures that address an investor's age, risk appetite and investment objectives with an appropriate apportionment of asset classes. However, critics of this approach point out that arriving at a standardized solution for allocating portfolio assets is problematic because individual investors require individual solutions.
As I discussed above we don’t have any standard rule for asset allocation, however as a financial consultant, I would like to give you the following suggestions out of my experience, which may help you to allocate your investments towards different asset classes successfully :
Finally, I would like to end up by saying asset allocation will yield you fruits if you review it on regular basis.
"what is tax declaration? "
- sourav sharma, 31st January 2009, Saturday"my total salary is 7.2/anum,my investment is 1lack, my hra is 12000/-p.m given by my company inc.in salary.how to calculate house rent deduction."
- JEEVAN PRAKASH ROY, 1st February 2009, Sunday"how to calculate the income and tax on income from other sources"
- rajesh, 1st February 2009, Sunday"Please let me know about whether small, occasional honouraria received from publication of poems published in foreign magazines. Thank you."
- Bibhu Padhi, 1st February 2009, Sunday"what the present rate of income tax"
- aadi, 1st February 2009, Sunday"nice"
- Sudhir Kulkarni, 2nd February 2009, Monday"income from salaryy by teaching in coalllege after retirement. whether pension usully payable? is tax calcuilated on saly and pension together or pension will be stopped? awaiting for answer."
- dr.pnr, 2nd February 2009, Monday"i want all basic details releted sales tax on which item what is the % of sales tax"
- virender, 2nd February 2009, Monday"Dear sir, How we will calculate the income tex on Income from share market. Dev sharma"
- Dev Sharma, 2nd February 2009, Monday"I am salaried persion. I have taken a personal loan from Bank. Intt. on Personal Loan is deductable from my salary amount or not. if yes please mention u/s."
- shailesh, 2nd February 2009, Monday"Is it neccessary to fill the income tax return for NRI person. "
- Mohit, 2nd February 2009, Monday"I ahve availed HL and bought a hose where I am availing 1.5Lakhs being paid as interst since it is self occupied. Now I have bought another flat with Loan. a) Can I offset the rental income from 2nd house against the interest payable for 2nd HL. b) The interst payable for 2nd HL is much higher then the rent payable. Can the loss from 2nd house ( execess interast after deducting rent) be acarried as loss from other source of income/ business/ house preprty. Thank you, Regards Bhaskar rao "
- Bhaskar rao, 3rd February 2009, Tuesday"Good questions thanks"
- Anjaneyulu.M, 3rd February 2009, Tuesday"hello friend, i had recieved a demand draft of 500,000GBP.and i want to encash it in my acc. what is the procedure of it? how much the income tax i have to pay? it is a winning amount from England."
- PRIYANSHU, 3rd February 2009, Tuesday"sir , please sent all information regarding income tax"
- prem sagar sahu, 3rd February 2009, Tuesday"please give details about hospital income, medical collage income details"
- RANGAN.K, 4th February 2009, Wednesday"what the present rate of income tax"
- RANGAN.K, 4th February 2009, Wednesday"what the present rate of income tax"
- RANGAN.K, 4th February 2009, Wednesday"How can I avail the IT benifit for vehicle / car allowance for commuting between office and Residence"
- M.Deivasigamani, 4th February 2009, Wednesday"Thankyou for sending "
- naga Srinadh Peddi, 4th February 2009, Wednesday"thanks"
- Sanjeev Shrivastava, 4th February 2009, Wednesday"Plz tl me Salary,Profit &Profession"
- Sanjay, 4th February 2009, Wednesday"Kindly to clarify whether Income Tax returns can be filed by Registered Post or Speed Post instead of filing in person. If filed by R.P, what are the precautions we have to take for material evidence of filing a return"
- Suri Babu Komakula, 4th February 2009, Wednesday"if i have taken home loan, and the flat will be occupied by me after 2 years, can i get income tax exemption as well as HRA EXEMPTION SIMULTANEOUSLY. "
- shekhar, 5th February 2009, Thursday"i want to know how i save tax"
- Amit Agrawal, 5th February 2009, Thursday"unit"
- verma, 14th July 2012, Saturday"unit"
- verma, 14th July 2012, Saturday
