Asset allocation and SIP are key to investment success

In my experience, women tend to be better savers and more thoughtful investors. However, they need to be careful about a few aspects, such as asset allocation. Allocate your investments across varied asset classes so that the portfolio is not affected by volatility in any one asset class.

Every asset class has a role to play in one’s portfolio. Equities provide growth while debt lends stability. Gold can provide a hedge against inflation. To get this aspect right, consider investing in a dynamic asset allocation or a multi-asset fund. Such funds invest across asset classes such as equity, debt and/or gold, based on the attractiveness of a particular asset class, and are dynamically managed. They ensure your investments make the most of market opportunities across a market cycle.

Stick to systematic investment plans (SIP) to meet your long-term financial goals. The benefit from this seemingly small step can be very big in the long term. Top-up your monthly investment amount over time through features such as SIP Top-Up, so that your incremental earning is matched with incremental investments.

There will be times when the markets may be volatile. On such occasions, refrain from investment decisions made in panic. Such buying or selling generally turns out to be detrimental. Do not let shortterm market volatility impact your long-term investment.