Every Asset class has its own risk and returns. Equity Investments are considered to be risky investments as they might lead to erosion of entire capital invested, whereas government bonds are considered to be risk free as you can be confident that the government will not default on its interest payments. This is where asset allocation plays a crucial role. Asset allocation is a technique for investing your money into various asset classes that would suit your income and risk appetite. People also go for trading tips for investing and strategies to make money.
Asset allocation involves tradeoffs among three important variables:
• Your time frame
• Your risk tolerance
• Your personal circumstances
Depending on your age, lifestyle and family commitments your financial goals will vary. While allocating your funds to various assets, like commodity investments, it is important to see that you distribute your funds across various assets to benefit from diversification via efficient commcontinue reading →