Right Asset Allocation makes maximum and safe return in long run
Asset allocation is implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame.
Asset allocation tries to balance risk by dividing assets among investment vehicles.The risk-return trade off is at the core of what asset allocation is all about.Don't put all your faith in financial planning software and survey sheets. Know your goals. Time allows you to take advantage of compounding and the time value of money.
Allocation Strategy:
Strategic Asset Allocation:
These strategies are framed in such a way that they do not change with change in economic condition and are rigid formed for long term horizon.
Dynamic Asset Allocation:
These strategies are made as per current economic condition and change with change in economic condition.
Core-satellite Asset Allocation:
Core satellite allocation are such that major portion of it is invested in core portfolio and some part adjusted with change in economic condition.
In Jan 2020 we suggested to shift major investment to debt from equity as NIFTY PE ratio reached 28 then in June 2020 we asked our client to shift major capital to Equity since Everytime Nifty fall 30% it starts correcting now since Nifty is again near to its all time high we ask our clients to stay balanced as we see breakout but stay cautious since you have already generated gain in 3 months what people generate in 3 years