Evaluation Of A Suitable Type Of Asset Allocation

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In this modern world of globalization, well and properly planned portfolio is very important and a success story to any investor. As a private or an individual investor its best for you to determine the right assets allocation, that best fit to your personal investment goals and strategies. As a matter of fact the portfolio you choose should meet your future needs for huge capital growth, with a promise of peace of mind. Individual who want to enter into investment can create a portfolio, which will fall in line with their goals, objectives as well as their investment strategies. This can be done by way of following a systematic approach. Here I outlined some important steps for engaging in such an approach:  Determining a Suitable Type…show more content…
Any investor aspiration is to earn high return on his or her investment day in day out, but what is the point if you are unable to sleep at night when the cash you have invested drops a little while. In this case I can say the personality cannot withstand the stress then the assets are not worth the stress. As explained above, expounding your present position and your future needs for capital, including your risk tolerance, will aid you, as to how your investments should be assigned among varied asset classes. Knowing the principle of tradeoffs and risks which quotes as, the chances of better returns comes at the expense of high risk of losses. So an example is the 20year old gentle man who just started employment who will not depend on his/her investment for income can choose to take higher risks in the quest for very high returns on his investment. The Couple in their 30’s who wish to save for their retirement on the other hand need to be focused on protecting their assets and ensuring that they draw income from their investment assets in a very tax efficient way. Largely, if an individual investor bear more risks, the more hostile the individual portfolio will be, assigning a bigger percentage to equities and few to bonds and other fixed-income securities as available. On the other hand if
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