According to Axis Bank, each asset has its own risks and returns.
Asset allocation is based on your risk appetite.
According to the bank, you can invest through stocks and MFs.
New Delhi. The volatility in the stock market continues. Rupee is getting weaker every day and pressure is being seen in the economies of the world. However, in the midst of all this, if you think about investing in the stock market, then you have many options available. If you look at the stocks of the market, you will find that the returns of all investment options are not the same. There are some such assets in the market which are showing loss, but there are others which are also making profits for the investors.
In such a situation, market experts always recommend diversifying the portfolio due to the different movements of investment options in different situations. They say that never invest your entire investment in any one asset. They suggest that investors should invest their money in equity to gold according to their risk appetite.
Know Axis Bank’s opinion about investing
In such a situation, Axis Bank has told through one of its blogs that on what basis an investor should invest his money in all these assets, so that his risk is minimum, while the return is also maximum. In this, the bank has given information about bank assets, asset allocation and investment formula. Here we are explaining in detail the advice given by Axis Bank. With this information, you can understand how to invest your money properly.
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Each asset has its own risks and returns
According to Axis Bank, each asset has its own risks and returns. Like equities can get very good growth and dividend income. However, the risk is also very high in this. According to Axis Bank, you can invest in it through stocks and mutual funds. On the other hand, gold and debt are safer investment options, although they do not earn as fast as equities and early cashing of investments in debt can affect the returns. Investment in these assets can be done through stocks, FDs, mutual funds, ETFs etc.
Asset allocation is based on your risk appetite
According to Axis Bank, asset allocation is based on your risk appetite and risk appetite simply means how long you can leave this investment, so that even in times of minor fluctuations, you will get no profit. Don’t be a problem In other words what is your goal regarding investment time. Axis Bank has given a formula for this, on the basis of which you can do asset allocation.
Axis Bank gave this formula for investment
In this, the bank said that if you think that this amount may be needed in one to three years, such as marriage, children’s education, or any big expenditure, then it is better that you keep 95 percent of the amount in debt and 5 Invest percentage in gold, stay away from equities. Because sometimes it takes years for stocks to recover after a sharp fall, even if that recovery race may cover your entire loss in the long run. But you don’t have that much time.
Know, what is Asset Allocation?
Asset allocation means that how much of your investment amount is invested in a particular asset like equity, gold, debt, property and how much is the cash balance which you can use at the time of need or invest in a particular asset can increase. The ultimate goal of asset allocation is to minimize investment risk and maximize returns on your money.
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FIRST PUBLISHED : September 29, 2022, 16:06 IST