2:49 AM
Aniket Kumar
Asset allocation has to do with what you choose to include Assistant classes in your portfolio. Each asset class has its own set of risks and benefits. The basis of good investment planning strategy begins with asset allocation.
Asset classes include stocks, bonds, cash, treasury bills, products and money markets. They also include derivatives such as futures and options. You may even consider mutual funds, index funds and ETFs as a type of asset class, although most fall within populations.
The bonds, treasury bills, money markets, the USD in cash and gold are more confident in your investment. This is a lower risk but also lower returns. riskier investments, but you can get high returns on derivatives such as futures and options.
Inventories are at an intermediate point, although there are a variety of risks in one's actions. SmallCap, for example, are riskier than large caps. But small caps are the ones that have the greatest potential for growth.
Each asset class has risks and benefits only. We recommend starting here to find out how much of your portfolio you want to be affixed to each of them.
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