The Best Asset Allocation For Your Equity Portfolio
'Equities' is just an 8 letter word. At the same time, the amount of theories, concepts and scenarios associated with it are many. So, investors have a number of queries related to investing in equities. The top most being, "How and where do I allocate my money in equities so as to get the best results?" Usually, brokers are of little help, spouting some well rehearsed statements involving jargon and heavy words. Well meaning friends too, do not always end up giving a crystal clear picture.
Equitymaster's Asset Allocation guide is an effort to highlight the various factors influencing asset allocation in equities. In this guide, we will have a look at how best to allocate your equity investments so as to achieve optimum returns from them.
We recommend that investors should decide their exposure to equities, which is only one part of the overall investment portfolio, after they have kept aside some cash. While we are no experts in wealth management, we believe keeping aside some safe cash is absolutely necessary. Not only will this cash take care of your liquidity needs, but it will also come handy during market declines. Particularly when there will be opportunities to pick up fundamentally strong stocks at cheap valuations. For some of you this cash component could be 6 months of usual monthly expenditure, for others 36 months. You need to decide what amount works for you, and then set it aside. Maybe in a FD, or in a pure liquid fund. Or maybe just cash at home.!
How To Plan Your Equity Portfolio
Importance of Asset Allocation Equitymaster talks about what it means by 'asset allocation' with regards to a stock portfolio and how you can draw up the ideal asset allocation plan.
In this article we discuss basics of investing, understanding market capitalisation and allocation between large cap, mid cap and small cap stocks.
Now that you have read our views on asset allocation, let's take the next step. How do you find the best Large Cap, Mid Cap and Small Cap stocks? Equitymaster's Advanced Stock Screener is your answer. Access the list of stocks now! - Large Caps, Mid Caps, Small Caps
How To Make Money From Stocks
There's one big difference between people who make money from stocks, and those who don't... And it's not the skill of picking the right stock every time. It's how you allocate your portfolio. You already know about it, but choose to ignore it every time you buy a stock... Even though it is extremely simple, and easy to implement. Now, allow us to help you finally make money from stocks... In this note we reveal it all...
Where Do You Stand Now?
As a member of Equitymaster's Portfolio Tracker (PT), you get ready-made reports on your asset allocation. Not only that, by benchmarking your allocation, the PT guides you on how to plan your stock market investments. Go ahead, try it today! (Already, a member? View the Asset Allocation Report Now!)
In your view, does asset allocation help? Tell us!
The above asset allocation guide should not be construed to be an advertisement for solicitation for buying or selling of any securities or any class of assets.
Equitymaster shall not be responsible for any direct/indirect loss or liability incurred to the user as a consequence of his or any other person on his behalf taking any investment decisions based on the information, analysis, quotes, articles etc. provided herein.