Asset allocation strategies for beginners
Choosing where to invest is important for building your investment portfolio. It significantly impacts your returns more than choosing individual stocks. Combining stocks, bonds, cash, and real estate in your portfolio is an ongoing process that should evolve as your financial goals change.
Below are some approaches to setting up your investment mix, along with tips for managing each strategy:
P2P lending, is a relatively newer asset class gaining popularity. It involves individuals lending money directly to other individuals through online platforms, bypassing traditional financial institutions. P2P lending provides attractive returns compared to traditional fixed-income investments like bonds and is less riskier than equity.
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Conclusion
In conclusion, asset allocation can be as active or passive as you want it to be. Whether you stick to a specific strategy or mix things up depends on your goals, age, what you expect from the market, and how much risk you're comfortable with.
Keep in mind, these are just general suggestions for how you might approach asset allocation.
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