Asset Allocation - The Key To Create Wealth For The Long Term

The success of your investment depends on two factors – choosing the right stock or mutual fund scheme to invest in, and choosing the right time to make that investment. In other words, timing the market. That said, the success of your investment wouldn’t necessarily mean a successful portfolio or successful wealth creation! The two are very different. Unfortunately, investors hardly understand this difference. Wealth creation is a long-term process, and requires both discipline and patience. It is much more than picking a few good stocks at the right time. Professional investors are usually able to do it properly – i.e., make the right pick at the right time, but not always. Regular investors, other than professional investors, have to depend on a structured approach to investing. For such types of investors, the asset allocation approach comes in handy and...