A critical element of financial planning is Asset allocation. Which asset you must own and how much of the asset you should own to minimize risk – these are the dilemmas every investor faces. Every investment involves some risk, be it market risk, interest risk, or tax risk.
Our asset allocation strategy aims to mitigate the risks through diversification and balance.
Since each asset has its cycle of ups and downs, therefore it’s imperative to have a diversified portfolio, i.e., to include a variety of assets in a portfolio like equity, gold, and real estate. The upside of one cycle compensates for the downside of the other period and its corresponding asset class.
The fluctuations in the cycle can be business cycles, inflation, oil prices, or political scenarios.
This is where Mutual Funds come into play. They provide accessibility to a well-diversified portfolio, thereby minimizing the risk faced by the investor. At Compounding Advantage India LLP, we help our investors by providing accurate and unbiased information regarding the various mutual fund schemes available in the market.
