Most likely not! Some people miss out on this opportunity because they are lazy, and others don't know how to do it. Whatever the reason, it has an adverse effect on portfolio returns if asset allocation and rebalancing are not implemented at regular intervals. And studies have repeatedly shown that asset allocation contributes to more than 90% of portfolio returns. It is the key to achieving optimum returns with low volatility. Then, why are investors less eager to maintain asset allocation? Some of the most important reasons could be: * They prefer the status quo and do not want to actively manage their portfolio. * Due to the greed factor, they want all profit shares. * Their portfolio is so messed up that it is nearly impossible to maintain balance. * They are unsure of their investment objectives or time horizon. * Rather than spending time with the market, they prefer to time it. * They have high expectations and need quick results. Long-term portfolio success is solely dependent on asset allocation and not on other factors such as market timing, stock or scheme selection, and so on.
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