Thursday, October 22, 2009

Asset Allocation : Some basic things


Each one of you must remember that investing is a continuous process, based on certain scientific methods, which would enrich the quality of your lifestyle and help you in achieving your personal goals and aspirations. Designing of portfolio for most of the individuals is a lifetime activity and not an ad-hoc process. You should ensure that you are taking a right decision to invest your heard earned funds in safe place.


First of all, before investing you should have an adequate knowledge of financial market and the various options available for investment then, then only you can plan you portfolio. Your investment strategy should be such that it fulfills your real life need like purchasing a house, receiving regular income, children education & marriage and future financial security.


The whole article is somewhat bigger and I need some more posts to cover every approaches of allocation for different age groups. In a nutshell, we would throw some light, on how you should allocate your savings at different stages in your life to gain maximum advantage. However, the asset allocation depends upon various other factors also, so you should also consider those factors before finally putting your money.


Just see the table below and find out the category in which you fall. [In the table, column depicts the age and rows show the status in which the person falls presently.] You may go to cell number in which you fall and find out what should be your asset allocation. Just click on the category number on the cell and you will be navigated to the corresponding post.





Status / Age



< 25 years



25-40 years



40 – 60 years



> 60 years






Single



I



-



-






Married with no kid



V



-






Married with kid





In the next posts we will suggest you an appropriate asset allocation depending upon the category in which you fall.







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