Asset Allocation

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning

Asset Allocation is the process of dividing investments across different asset classes.

Definition

It helps balance risk and return by spreading money across stocks, bonds, gold, and other assets.

Why It Matters

Proper allocation improves long-term returns and reduces risk.

Types

  • Aggressive
  • Moderate
  • Conservative

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