From Due Media.: 2024-05-02 18:42:47

When investing, your asset allocation between equity (stocks) and debt (bonds) is crucial. Stocks offer higher returns but are riskier, while bonds provide lower returns but are less risky. The right allocation varies depending on your circumstances and risk tolerance. Equity investments involve owning part of a company through stocks, with potential for profits or losses. Debt investments are loans, with lower risk and returns compared to stocks. The 100-minus-age rule suggests adjusting your allocation based on your age, but individual factors should also be considered. Rebalancing your portfolio periodically helps maintain your target asset allocation and lower risk exposure.



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