The Key To The Art Of Asset Allocation

The strategy of asset allocation is recommended to ensure a portfolio does not get too affected by gyrations in a single asset class. In a recent panel discussion on the ‘Art of Asset Allocation’, a part of the investor education and awareness initiative of Aditya Birla Sun Life Mutual Funds in association with Outlook Money, experts highlighted the role and importance of this strategy. The panellists for the discussion were K.S. Rao, head of investor education and distribution development at Aditya Birla Sun Life Asset Management Company; Amit Trivedi, an author, speaker, blogger and trainer; and Vinod Bhat, portfolio manager and equity strategist at Aditya Birla Sun Life AMC. Here are some edited excerpts from the discussion. What Is Asset Allocation? Simply put, asset allocation is about dividing your money to be able to invest in different asset classes. “The goal...