Asset allocation is an investment strategy where you divide\nyour investment portfolio into different asset classes – such as stocks, bonds,\ncash and real estate – based on your risk appetite and age. Asset allocation\nhelps you balance risk and reward by spreading your investment across a range\nof investment instruments. With each asset class having its own risk and return\nprofile, your overall risk is curtailed, and your returns are\nenhanced. <\/p>\n\n\n\n
Your asset allocation should change and evolve per your changing financial needs, age, and other factors. While there is no one-size-fits-all approach to asset allocation, you can benefit from understanding the key principles of asset allocation by age and risk tolerance, and the role of asset allocation in achieving your long-term investment goals. You may also consider consulting with a professional financial advisor<\/strong><\/a> <\/strong>who can tweak your portfolio and allocate assets as per your financial needs, your age, and other factors.<\/p>\n\n\n\n Keep reading to learn more about asset allocation and the ideal asset allocation mix to consider for your portfolio, based on your age. <\/p>\n\n\n\n Table of Contents<\/p>\n