Asset allocation- 

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Health and Wealth ...... well balancing keeps us Healthy & Wealthy

Our daily food habits keep us healthy. If we take care of our regular diet proportions of  

Carbohydrates, fat, Dessert, Protein, Vitamins, Minerals .......and if review our diet plan we remain fit always.

 Like that to remain financially healthy we should take care for proportions of

 Fixed Income, Real estate, Gold, Alternative investments, equity, Insurance & Loans.

v  Fibre (Green vegetables, Sweet corns, Carrots, Broccoli, Fruits) / Fixed income (FD, Post MIS,EPF,PPF, Debt MF, NSC, Bonds & Debentures)

Fibre in the diet keeps the stomach in good shape as fibre rich diet won`t make us fat.

Fixed income is like Fibre in the portfolio.

Low risk debt investments give us stability but never bit the Inflation.

Too much allocation to Debt won`t create sufficient wealth.

v  Protein (Milk, Yogurt, Oats, Almonds, Eggs, Dates, Beans)   / Equity (Diversified Mf  Equity Funds -Large cap, Mid caps, Multi cap, Value funds, Small  caps)

Protein builds muscle & helps the body grow.

We need it most when we are young & the body is developing.

As we grow older, we can reduce, but not completely eliminate, our intake of protein.

Equity act like protein in our portfolio, building wealth & adding its growth.

Focus on them when we are young & watch our portfolio grow.

Whether we invest directly or through   Mutual funds can give the higher returns.

v  Carbohydrates (Whole grains, Bananas, beetroots, Apples)  - Real estate ( Home, Land, Commercial) Carbohydrates are instrumental in the digestion of fatty foods.

Real estate gives stability to our portfolio and accounts for the big investment in terms of value. However, if we have too much of real estate, all other investments get force to leave from the portfolio. This can suddenly change direction of the portfolio and generate disappointing returns. 

v  Fat (Cheese, Dark Chocolate, Peanut Butter) - Gold (Physical, Gold ETF & sovereign Gold Bond) everybody needs to consume fat. It provides energy and gets stored as reserve in the body.

Yet, too much fat in our diet can make us unenergetic and lead to several health problems. 
The yellow metal is the fat in our portfolio. It also acts as a cushion to fall back on during an emergency.

But too much gold will drag down our portfolio returns. so allocation shouldn`t be more than 10%.

v  Vitamins- Insurance (Life and Health insurance)Just as we need vitamins in our diet to safeguard our health and improve immunity, we need insurance to protect our finances against unforeseen circumstances.

Don't depend on the insurance that comes along with an investment. Take a dose of pure insurance, much like the vitamin supplements that doctors prescribe. 

v  Minerals – Loans

Loans are like the small minerals in our financial diet.

They help in building assets but excessive intake can lead to complications. They are good for your portfolio if taken in moderate amounts. 

v  Review 
Even the healthiest of diets will not have the desired result if the individual does not exercise. Our portfolio should also not be fixed.

Ensure that we move it around regularly. Rebalance it once a year. Review your Assets & Investments.

v  Allocation 
As we grow older, our diet undergoes a change. Similarly, our asset allocation alters as we add on years. Make sure we follow a disciplined asset allocation and  we will never make a wrong investment.