Not funds but the Asset Allocation Generates the Returns.

      Asset Allocation means not putting all your eggs in one basket. It means diversifying your investments across asset classes. Simply put it can be understood as investments curated to your specific needs by following the wisdom of Diversification.

      The most common baskets for investments are Equity, Debt, Real estate and Gold. These are also called asset classes. Now an Asset allocation formula that will tell you the proportion in which you should distribute your wealth in these baskets.

     The Allocation will be different for people with different risk appetite and financial goals. If for instance, your financial goals are several years away and you are in 30+s, meaning you have a high risk appetite. Your Asset allocation can be heavier towards Equity. On the other hand if you are approaching your investment, meaning that your capital must be preserved, and your Allocation is likely to be fileted towards Debt investments (Bonds). The reason being that Debt (Bonds) Investments tend to be relatively safe.

    So there are multiple ways one can utilise Asset Allocation for Safety, Liquidity and Returns. At AKERKAR WEALTH we give importance to Asset allocation and review and check asset allocations of our clients periodically.