Portfolio
What is Asset Allocation?
Asset allocation is the strategic distribution of investments across asset classes, equities, bonds, gold, real estate, cash, the single most important decision affecting portfolio returns.
Formula
Common rule of thumb: Equity allocation = 100 - Your Age. But personalize based on goals, risk tolerance, and time horizon.
How to Interpret
Studies show asset allocation explains 90%+ of portfolio return variation over time. Getting the equity-debt-gold split right matters more than individual stock picking.
Typical Ranges
Aggressive (age 25-35): 70-80% equity. Balanced (35-50): 50-65% equity. Conservative (50+): 30-45% equity.