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    Mutual Fund Corner: Key things to know about asset allocation

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    Mutual Fund Corner: Key things to know about asset allocation

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    In this latest episode of ‘Mutual Fund Corner’, Harshvardhan Roongta, Certified Financial Planner at Roongta Securities talk about the principles of asset allocation.

    In this latest episode of ‘Mutual Fund Corner’, Harshvardhan Roongta, Certified Financial Planner at Roongta Securities discussed about the principle of asset allocation.
    On asset allocation, Roongta said, “Asset allocation is nothing but an exercise wherein an individual undertakes to determine how much of the investments will go into say equity, debt, precious metals and real estate. So it is just an exercise of splitting investments into different asset classes.”
    On need for asset allocation he said, “Each underlying asset has different characteristics and they behave in a different manner as per given market condition. For example, when equity markets are very volatile, you will find gold to be a safe haven. So, that is why an investor will first get into that zone wherein they will say that I am going to be splitting my money into different asset classes. So, that I have a good balance across different market conditions.”
    “There are different ways you can define your asset allocation. Now, if asset allocation strategy is being developed based on three different fundamentals. So, one is that you need to keep in mind your risk tolerance, you need to see how old you are and then you need to see what is the time horizon," he added.
    For the entire show, watch the accompanying video.
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