Financial Planning is the first step to having a secure life

Asset allocation is vital part of financial planning!

What Is Asset Allocation?

When you save money, you have the below options for investing –

  • Equities
  • Debt
  • Real Estate
  • Gold

A proper asset allocation will help you with the right mix in each of the asset classes in a proportion that is commensurate to your risk profile.

Let’s understand these assets more!


  • The sole purpose of Equities is to GENERATE wealth
  • Ownership of business
  • Amongst the most volatile asset classes + highly risky (hence, the returns also tend to be high)
  • The only asset class that can compound in double digits


  • The sole purpose of Debt is to PROTECT wealth
  • This consists of Fixed Deposits, Pension products, Debt Mutual funds
  • Here the money is lent in the form of debt
  • The risk is lower here, so the return will be also lower

Real Estate

  • Investment in real estate can serve as a hedge in bad times
  • The investments in real estate can be in the form of – Physical Real Estate or Real Estate Investment Trust(REIT) which is a mutual fund for the real estate sector


  • During uncertain times such as Geopolitical tensions, Disasters, or Pandemics people tend to sell risky assets to rush towards gold
  • Ways to Invest in Gold – Physical Gold Gold Mutual funds Sovereign gold Bonds

How to decide the asset allocation?

A Young individual – Provided the person has very few liabilities and responsibilities. The person must be very aggressive on equities!

A middle-aged person – As responsibilities+Liabilities go up, A balanced portfolio with a mixture of equities+debt+real estate+gold!

An Old age person – With retirement around the corner. A lot of the allocation must be made to debt products to create a fixed flow of money


  • Create a financial plan
  • Create an asset allocation
  • Asset allocation will vary with age
  • Make sure u have all the products i.e Debt, Equity, Real Estate, and Gold
  • Do a Risk profiling and then arrive at the optimal asset allocation

All our research here. | Our complete media coverage here.


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