How to allocate your assets
How to allocate your
assets why I choose this content is because it is the most important factor for
those who want to become rich so I thought I want to share a piece of knowledge
about it. Asset allocation is a strategy most people don’t have any good idea
about how to invest and which asset will make good returns. As an investor you
have to know what kind of asset you have to carry in your portfolio then only
you can diversify your investment portfolio. Only one asset will not make you a
millionaire you have to choose which is best. Here you need proper financial
knowledge otherwise you can’t allocate any asset and you can’t make a good portfolio
for your investment. Investment is like your physic because if you follow diet
and exercise, then your physical health will be good at the same if you follow strategical
investing and you can make a healthy investment portfolio. When do you get
proper financial knowledge? then only you can make a good financial plan. Financialplanning is an important most of people money management consider as financial planning
actually financial planning is totally different from the money management. If you
want to become rich in the future? then you have to know how to manage your
money mostly common people didn’t try to invest in the stock market and mutual
funds and other financial securities the bank F. D’s, pension schemes and post
office deposits these are the major investment of common peoples. Mutual funds and stock market investing will
make high returns in the long term but most common people didn’t try to invest
here, why because of fear to risk. When the person gets proper financial knowledge
then he can invest in various sources and they can find the best returnable assets.
Allocate your income sources
You have to Allocate your income sources which
means you have to find a source for multiple your money, so you need to
allocate your income sources. you have to make an investment portfolio then you
have to allocate your funds, for example, if your investment money is 10000 this
is you have to consider as 100 then you have to subtract with your age t like
If your age is 25 =
100-25= 75
Here you got 75 this 75%
of the money you have to invest in equity, balance 25% you have to invest in government
securities this is the basic technique. Here you need to allocate your 75%
money which means you have to invest this amount in different funds then only
you can make a good return in the future.
If you are going to
invest in the stock market or mutual fund schemes? Then you need proper
financial knowledge.
Which asset will make good returns?
Which asset will make
good returns most peoples have these doubts, first of all, you need to understand
well about the asset, asset like a money-making machine it will make a passive income,
Once you create an asset that will give you a fixed return, sometimes it will
take much time for giving returns so you need to consider that too. Most of the
peoples buying a liability but they consider as the asset this is also the major
mistake of most peoples, which thing make money for you that you can consider
as the asset. You can invest in venture capitals, stocks, mutual funds, you can
invest in bonds, etc. you can invest in various sources before that you need to
analyze that well before going to invest in any sources you have to ask some
questions to yourself like – why I have to invest here, how much I can expect returns
from here like that these questions will make clarity to take a decision.
Can invest in liquid funds?
Liquid funds are a good
investing plan because there contain low risks, and also you can invest for a shorter
it is an advantageous investing plan.
Advantages of liquid funds
· Short
term funds
· High
credit quality
· Interest
risk is low
· Within
24 hours, you will get liquid cash.
· Fixed
returns
Disadvantages of liquid funds
· Can’t
expect a high return
· Can’t
use for emergency purpose
Conclusion
How
to allocate your assets most of the peoples don’t have any idea about how to
classify their income sources this is actually a major problem if you want to
solve that? then you must try to improve your financial intelligence, schools and colleges will not teach this you
have to learn that by yourself, you have many sources for that, financial related
books, podcasts, and daily we are posting financial related and business-related
articles you can improve your piece of knowledge from this too.
This content is publishing
for education purposes only if you want to invest in any sources that decisions have
to make by yourself.
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