Asset Allocation Strategy Part 2

Continuing on my previous post on How Asset Allocation is Like Marriage, here are some more thoughts. (Btw, if you don’t believe in the institution of marriage, skip this post. But do come back later :)

Marriage is a committment towards family and your social future. So is Asset Allocation. Towards your financial future.

Marriage can be an arranged one or a love marriage. (Even if you talk of a live in relationship, that’s a committment too)  Similarly your asset allocation can be done in a number of ways.

In an arranged marriage, the parents try to match the kundalis. When it comes to asset allocation your risk profile is your kundali.

In a love marriage, you are focused on the one guy/girl you love. With asset allocation also, one may stick to one asset class like equity or debt only.  For example, people who are into stocks scoff at the idea of investing in debt and people who are invested in debt may be scared of wading into stocks. They love their own asset class.

It’s a good idea to stick to the asset class you love and understand. The only problem is that of lack of diversification. Though you can diversify within your stock portfolio or spread risk over within your debt portfolio.

In any case, you need to work on your marriage even though they may be made in Heaven. So do you need to continuosly evaluate your asset allocation and do course corrections.

Do stay tuned in for concluding thoughts on Asset Allocation. It’s Part 3

Coming Soon! RupeeCamp "Financial Planning Workshop". "Join us"

Welcome back! Join me on this journey to improving our financial IQ and sharing what we know. Updates at RSS feed or Email. And spread the word please Thank You!

Recommended posts

Tagged with:
Posted in Financial Awareness, Investing gyaan
2 Comments » for Asset Allocation Strategy Part 2
  1. sumi says:

    Well I guess I am headed towards a love marriage with equities :) but yeah it is nice to always consider all your available options even before you fall in love :)

  2. Ranjan says:

    @sumi
    Good that u r attracted to equities :) It’s the best asset class. All the best :)

2 Pings/Trackbacks for "Asset Allocation Strategy Part 2"
  1. [...] Thanks for visiting!This is part 3 of my posts on Asset Allocation. New readers, see Part 1 & Part 2. Part 1 and 2 were about why Asset Allocation is a good idea and what’s it all about. I [...]

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Books to Read
Categories
Get your title loan today. Call our loan experts for help getting quick and easy title loans !