Portfolio Allocation (Asset Allocation) is the strategy of dividing investments among different asset classes like equity, debt, and gold to balance risk and return.
Portfolio Allocation involves spreading investments across various asset classes to reduce risk and optimize returns. Instead of putting all money in one asset, investors diversify to manage market volatility.
This strategy is widely used by investors and guided by principles encouraged by the Securities and Exchange Board of India for informed investing.
👉 “Don’t put all your eggs in one basket”
"<p>An investor allocates:</p> <ul> <li>60% in stocks</li> <li>30% in bonds</li> <li>10% in gold</li> </ul>"