What is Asset Allocation?
A simple explanation for Indian investors — Wealth Simplified.
Quick Answer
Asset allocation is how you divide investments across asset classes such as equity, debt and others based on goals and risk considerations.
Simple Explanation
It is the mix, not just the pick of one fund.
How It Works
Investors choose proportions across categories and review them over time.
Why It Matters
Diversifying across asset classes can change the risk/return profile of a portfolio.
Simple Example
A longer-term goal may hold more equity than a goal due in two years — illustrative, not a recommendation.
Common Misconception
There is no single perfect allocation for everyone.
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