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What is the common mistake that people make when deciding on asset allocation?

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What is the common mistake that people make when deciding on asset allocation?
OLM Desk - 21 September 2017

What is the most common mistake that people make when deciding on their asset allocation?

Amit Bapna, Mangalore

Most investors do not think methodically about asset allocation and those who do have an asset allocation do not consider re-balancing portfolio and land up exiting in panic situations. Investors tend to swing in the extreme from debt to equity or the other way round, when they should be following a balanced approach. Either of these two situations can be catastrophic to one’s investments and impact the ideal asset allocation suitable for them.

olmdesk@outlookindia.com

What should be kept in mind before deciding in favour of any agent or a broker?
Guide on my choice of funds as I plan to build Rs 20 lakh savings in 15 years.

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