Balance Your Portfolio for Better Financial Future

Balance Your Portfolio for Better Financial Future

A Portfolio can not be made up of just one asset class. But the portfolio is the collection of more than 1 asset class such as Equity, Debt, Gold, Real Estate, Art, Businesses, Online Properties…etc..

And collecting every type of asset available in the market is also not enough to become financially free. You will have to re-balance your portfolio by doing proper asset allocation time to time.

Here are the various factors that determines your asset allocation.

- It varies from person to person

- your age

- risk appetite

- number of years remaining for the retirement

- income level

- number of dependents

- your future financial goals…etc..

By taking into consideration all of the above criteria, you should do your portfolio asset allocation. Say for Example, if you are in your twenties and without having any dependents than you can increase the equity allocation of your portfolio to as high as 90-99%. This is because you still have lots of years remaining for the retirement and you don’t have any dependents on you so you can take more risk.

Thus, consider all of the above criteria while balancing your portfolio for the better financial future.