Saturday 2 June 2018

Stock Market Trading Updates-4 investment asset allocation strategies to create wealth

To grow one's capital, it is important to decide how much money is to be invested in equity, debt, etc rather than choosing which equity or debt mutual fund to invest in. This is called asset allocation as it entails where to invest and by how much.

Asset allocation refers to how much of your money is to be parked in different assets: equity, real estate, gold and so on. In the case of mutual funds, asset allocation refers to allocating money between debt and equity mutual funds.
Debt and equity mutual funds have many sub-categories. Equity mutual funds can be categorised as largecap, smallcap, and so on. Likewise, the sub-categories in debt mutual funds include liquid funds, ultra-short term funds and short-term funds.
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