Asset allocation is a strategy wherein it makes sure that you are always invested in the best performing asset class. Having a proper asset allocation plan after considering your risk profile is the key to financial planning.
Why consider asset allocation? Read the scenarios below
Scenario # 1: Rs. One lakh invested at 8% over 25 years grows to Rs.6.84 lakhs.
Scenario # 2: Rs.One lakh divided equally among five investments.( One loses principal and other four earns 0%,5% , 10% and 15% average annual returns).This diversified portfolio will grow to Rs.9.62 lakhs in 25 years.
Below is a general representation for asset allocation.
|Age 25-40 (Accumulator)||Age 40-55 (Mid life transitional)|
|Age 55-60% (Harvestor)||Age 60 and above (Post retirement)|
In case you wish to know more on how we can help you find a suitable asset allocation based on your goals, please contact us. We would be happy to assist you and take you through your investments based on your requirements.
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