*Why is Asset Allocation so important*…… __because it’s the simplest tool to manage risk, liquidity & returns_
Else, we’ll end up thinking as below –
During *bull markets* – portfolio comparison is done to the *equity markets*…… Why the miss in making these stellar returns?
During *bear markets* – portfolio is comparison is done to the *base fixed deposit rate*…… Why did we not make atleast a fixed deposit return?
A well thought out *asset allocation* ring fences us from these not so sane thoughts.
For that, we need to be clear on…
*Why have we invested?*
*How long is the tenor of our holding?*
*Do we need any cash from these long term invested assets?*
If the investments made do not match with the true responses to the stated questions….. _*there is trouble for sure*_
Waxing and Waning of a celestial object like *moon* happens every 15 days… _will it not happen in life, physical or financial assets 🤷🏼♂?_ *It Will* & *We need to have the strength to withstand these phases*