Asset allocation is an investing technique that involves selecting how to distribute your money among several types of assets.
A few examples of asset types
1. Equities (Direct Stocks, Equity oriented Mutual funds etc)
2. Fixed Income (Fixed Deposits, debt-oriented mutual funds, Provident fund etc)
3. Gold
4. Real estate
An asset allocation decision is influenced by your age, risk tolerance, and time horizon for achieving your financial goals. Asset allocations goal is to build a portfolio of on-correlating assets that minimises portfolio risk while maximising profits.
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