Asset allocation in your portfolio is very much important. But many people don’t know that How much should be the Asset (Investment) Allocation of Gold & Real Estate in your Portfolio?
Well, according to the experts, The Gold Allocation in anyone’s portfolio should not be more than 10% of the total Net Worth of your portfolio.
And the Real Estate Allocation should be 30%.
Now the above 2 rules are for investors who want to build optimal diversified portfolio of their Investments. But if you are a Gold trader or a Real Estate Tycoon than the above 2 rules don’t apply to you. Because if you are master in Real Estate Investments than your 100% Investment allocation can be in the Real Estate only.
If you are a jeweller or in Gold Business than your 100% Asset allocation can be in Gold.
So the Investment allocation of your over all portfolio is totally dependant on your Financial IQ. Because if you feel more comfortable with Gold than your Investment allocation can be as high as 100% in the Gold.
Now take the Example of myself. I am expert in “Financial Information Assets” means the articles in this Blog are wealth of Information for me and useful to literally millions of people. So whenever, I have spare money I higher writers for me and they create articles for me. My almost 90% Investment is in this Blog. So the rule of Asset allocation doesn’t apply to me.
So your asset allocation should be based on your Financial IQ.
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