3 reasons why you need asset allocation?
Your goals should be in the forefront of your mind when you begin the financial planning process. After that, you work backwards to create a strategy for achieving these objectives. Of course, merely saving in a bank savings account won't help you reach your long-term financial objectives. Simply said, the returns won't be sufficient. Allocating money to riskier ventures and taking measured risks are what you need to accomplish. That will guarantee that over time, both your principal and your returns will generate returns. There are many twists and turns in our investment journey as it develops in different ways. We have several goals with various return requirements in a setting with shifting risk profiles. If we as investors only invest in one asset class today and then go to bed, we are probably in for a harsh awakening tomorrow. The assets we invest in have different risk/return profiles, much like our investment journey. We must concentrate on " Asset Allocation ...