6-STEPS FOR BALANCING INVESTMENT PORTFOLIO BY- IMPERIAL MONEY Asset allocation involves dividing your investments among different assets, such as stocks, bonds, and cash. The asset allocation decision is a personal one. The allocation that works best for you changes at different times in your life. It is depending on how long you have to invest and your ability to tolerate risk. ASSET ALLOCATION The practice of spreading money among different investments to reduce risk is known as diversification. Diversification is a strategy that can be neatly summed up as “Don’t put all your eggs in one basket. One way to diversify is to allocate your investments among different kinds of assets. Historically, stocks, bonds, and cash have not moved up and down at the same time. Right Diversification Rebalancing is what investors do to bring their portfolio back to its original asset allocation mix. Rebalancing is needed because over time, some investments will grow faster than others. This may push your holdings out of alignment with your investment goals. By rebalancing, you will ensure that your portfolio does not overweight a particular asset category, and you’ll return your portfolio to a comfortable level of risk. Rebalancing Your Portfolio Tactical asset allocation is a more dynamic, forward-looking form of asset allocation that seeks to adjust asset allocations to expose investors to capital building and to capital. preservation opportunities based on macroeconomic and leading indicators for various markets, sectors and asset classes. The effects of globalization, market volatility and rapid economic changes over recent years have created renewed interest in this form of asset allocation. Tactical Asset Allocation Rainy day fund is money that’s set aside for unexpected and lower-cost expenses, like home maintenance or parking tickets. A rainy day fund is slightly different from an emergency fund. The main differences are the size of the fund and what they’re used for. A rainy day fund is for smaller unanticipated expenses, such as buying new tires or paying to repair a home appliance. Importance of Rainy Day Fund The term active management means that an investor a professional money manager. A team of professionals is tracking the performance of an investment portfolio and making buy, hold, and sell decisions about the assets in it. Active Managment To Book an Appointment Click on me Happy investing with Imperial money!!! Imperial Money Pvt. Ltd. Investment Sahi... Future Sahi... www.imperialfin.com wecare@imperialfin.com +91 95 95 88 99 88 IMPERIAL MONEY