Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Asset allocation is the strategy of dividing investments across asset classes such as equity, debt, gold, and cash to balance risk and return.
Asset allocation is deciding how much of your money goes into shares, bonds, gold, and safe cash — the biggest driver of long-term portfolio outcomes.
Optimal allocation depends on goals, horizon, liquidity needs, and risk tolerance. Rebalancing periodically restores target weights after market moves. Indian investors often use the 100-minus-age rule only as a starting heuristic.
A 35-year-old with ₹20 lakh might allocate 60% equity (₹12 lakh), 30% debt (₹6 lakh), and 10% gold (₹2 lakh), rebalancing annually if equity grows to 70%.
Many investors rebalance annually or when any asset class drifts 5–10% from target. Avoid over-trading on small moves.
Shorter horizons favour higher debt and liquid allocations to reduce equity drawdown risk near the goal date.
Many planners suggest 5–15% gold via SGB or ETFs for diversification and inflation hedge, adjusted to personal preference.