While all of us aspire to create wealth for ourselves and for the comfort of our families, in today's time of rising cost of living, it is imperative to understand a host of factors before one binges into a risky asset class such as equities to achieve one's life goals. Although, equities appear the best investment option to make the most of in a stock market rally, it is not very wise to nest all eggs in one basket. This is sometimes comprehended by people only in conditions of adversity (such as a sharp decline in stock market), when investors have parked a large portion of their corpus in a particular asset class (in this case, equities).

It is vital for you to understand that not all assets move in the same direction at the same time. If equities are witnessing a bear market, it is unlikely that other asset classes such as gold, debt instruments, real estate will also be witnessing a down-turn at the same time or vice-versa. Hence it is best to invest in more than one type of instrument to improve your chances of achieving your long-term goals with minimal turbulence. You see, planned asset allocation acts as a shield to protect your wealth during uncertain economic conditions and market volatility.

Allocating your hard earned money wisely…

Well, here are some factors which one must take while you intend to allocate your assets - hard earned money wisely, as they provide a comprehensive picture.