Saturday, January 29, 2011

Asset Allocation

Asset Allocation is the key determinant to any portfolio. Asset Allocation works on the principal of diversifying financial risk. It means it believes that all the investments do not behave same way, so adding those assets in the portfolio which do not have positive correlation. By doing so it takes the benefits of booking profits of the performing assets in the portfolio and buying the under performing asset and again doing like that among the assets of the portfolio.   

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