How Asset allocation helps in wealth creation ?

we often hear about asset allocation in wealth building , let us understand how this helps 

Asset allocation is the other name of diversification , here diversification means distributing our money in different assets like stocks ,cash , Fixed income , property and gold . This is based on your risk profile and goals. Asset allocation ensures all your eggs is not in one basket and if one asset crashes another asset gives you returns.

Benefits

Reduces risk : Minimises risk of loss by investing in different asset classes . If one asset crashes other asset gives returns . 

Helps in achieving financial goals : Depending on time horizon one can invest in dominant asset to achieve their financial goal .

Tax efficiency : Proper asset allocation helps in determining right tax saving instrument and helps in less outgo of tax .

Liquidity benefit : If we invest entire amount in Real estate and when in need we cannot liquidate and use the money , but if the same amount is invested in different baskets we can liquidate the amount when in need . 

conclusion : Investments as per asser allocation is not easy as it might seem to you , one need to take in many factors to reap benefits .  You can be rest assured in achieving your financial goal once asset allocation is in place . 

Initial stage everyone needs adviser handholding . If you are looking for optimal asset allocation and looking for a expert service do reach us on pcswealthadvisers@gmail.com 



PCS CAPITAL were first generation entrepreneurs in financial services . It was formed with foundation stone for creating long-term wealth for the investors through various financial products like Mutual fund s , Insurance , Fixed deposits and Alternate Asset products . We help you understand your financial objectives and make appropriate plan to realise them with proper risk management. rnYou can leave your contact details for professional help in your investment journey.

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