Determinants Of Your Ideal Asset Allocation

The ability to work out your optimal asset allocation (balance between various asset classes), and stick to it resolutely through a periodic portfolio rebalancing process is a critical success factor for long term investing success. Not only does this ensure that your portfolio’s volatility is within the bounds of your risk tolerance limits, but it also acts as a surprisingly effective guard against poor investment choices that could arise from your behavioral tendencies, primarily greed and fear. Put simply, Asset Allocation is an investment strategy that helps you arrive at…

Read More