What are the Factors to Consider When You Are Going to Do Asset Allocation?

[Suba]

Investing is one way we do to build long-term wealth and each investment instrument has a different level of profit and risk, the smaller the risk, the smaller the profit and vice versa. Financial experts often advise us not to put all our money in one wallet, so we need to diversify, by allocating investment assets according to the expected composition. For very conservative investors, of course, they will choose and allocate all investment instruments in investment sectors that have low risk. However, when we diversify and allocate assets, there are many factors to consider,

 

[Starmix]

I consider my one hectare land an asset, but it is rented. annually. I can only diversify it by investing the rent.

 

[Augusta]

When deciding on an asset allocation, you can consider how comfortable you are with market fluctuations. This can be influenced by your age, income, expenses, and financial obligations.