Asset Allocation
Definition
The distribution of investments across different asset categories. Common rule: equity allocation = 100 − your age. So at age 30, invest 70% in equity and 30% in debt. Rebalance annually to maintain target allocation.
The distribution of investments across different asset categories. Common rule: equity allocation = 100 − your age. So at age 30, invest 70% in equity and 30% in debt. Rebalance annually to maintain target allocation.