Asset Allocation
Asset allocation is a strategy where an investor determines how to distribute their investments across different asset classes, such as stocks, bonds, and real estate, based on their risk tolerance, financial goals, and time horizon. The goal is to balance risk and reward by diversifying investments, helping to maximize returns while minimizing potential risks. This strategy allows investors to tailor their portfolio to their unique needs and preferences, aiming for optimal growth while managing volatility. Proper asset allocation is crucial for long-term financial success.
Related Terms
Lump Sum
A lump sum is a single, one-time payment made in full, rather than in smaller,...
Return on Equity (ROE)
Return on Equity (ROE) is a key profitability ratio that measures how effectively a company...
Issuer
An issuer is the company that sells its shares to the public for the first...
Index Futures
Index futures are derivative contracts tied to an underlying index, such as Nifty Bank, Finnifty,...
Listing
Listing is the process where a private company makes its shares available for public trading...
Averaging Down
Averaging down is an investment strategy where an investor buys additional shares of a stock...
