“You’ll find that there will be an investment for every season, but there will be no investment for all seasons.”
Venita van Caspel- Famous Author and Investor
In Personal finance, the most important thing is asset diversification.
Asset classes perform in opposite manner e.g. it is most likely that equity and gold.
Hence it is important to have risk management strategies like Asset allocation and Asset diversification.
Asset allocation is the strategic approach in deciding percentages between different asset classes.
Whereas by using Asset diversification one may reduce focusing majorly only on 1 asset class.
Diversification also needs to be done within the asset classes like spreading the portfolio in large cap/medium cap and small cap amongst equities.
Again these strategies need to be done in consultation with a financial advisor who will look into the investor’s risk profile and take appropriate decisions while involving the investor.
