Sunday, November 8, 2020

Rework your Asset Allocation

The stock market is back to its highs. At least my portfolio- thanks to the Systematic Investment plans is back to where it was in Dec 2019 ( Phew). The uncertainty in the market though still continues with the second and third waves of corona virus all across the globe.

This is the right time to review ones asset allocation and look at your money boxes to ensure they are rightly aligned to the requirements .

Just so that we are reminded of the money boxes, a quick recap .... there are three money boxes 

1. In 10 years time... keep a high equity allocation
2. Required in some time .... 4 to 7 years... keep a higher debt allocation than equity ... but equity is a important. 
3. Required Soon... in the next 3 years. Keep the money in a fixed investment.. debt is the way to go.

The markets will remain volatile . It is best to ensure that you are looking at each your goals and aligning them to each of the boxes. This will define how your strategy for the asset allocation will be.

It's as simple as that... 

simplefinancialsense 

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