How Asset Allocation Can Work In Your Favour In Turbulent Times

Asset allocation simply means spreading one’s investments across varied assets in order to minimise the risk, which might come in many forms. In a recent panel discussion, K S Rao, head, investor education and distribution development at Aditya Birla Sun Life Mutual Fund, and Amit Trivedi, financial author and blogger, discussed how investors can get the most out of their asset allocation plan and in which situations this strategy comes handy. The discussion was moderated by Nidhi Sinha, editor, Outlook Money. During the discussion, Rao said that proper asset allocation can provide an edge to investors’ returns, since it balances out the risks and rewards. This is because each of the asset classes will behave very differently and it’s very difficult to predict their movement. “If one is fixated about investing in a particular asset class, they should remember...