What is asset allocation?

Let’s first understand what assets are. Assets can be broadly divided into equity, debt and gold.

When you divide your investments into these assets, it is called asset allocation. Your asset allocation determines your risk and possible returns on your investments.

A few investment products like mutual funds can help you allocate assets more efficiently than others.

Read more about mutual funds here.

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    Points to remember

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    You can choose an investment product based on your risk profile and the time it can take to reach your goals.

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    There are different investment products available for other goals.

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    When you divide your investments into assets like equity, debt, gold etc., it is called asset allocation.

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