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Asset Allocation
Asset allocation is the division of a portfolio among asset classes with different risks and returns. It depends on goals, time horizon and tolerance for losses, and is the biggest single driver of long-term portfolio results.
Why It Matters
Getting the mix right matters more than picking the perfect stock.
In India
A 22-year-old saving for retirement might hold mostly equities, while someone needing money in two years would hold mostly safe deposits.
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