While we’ve often been told that asset allocation is important, often we limit this to cash/FDs/Debt Vs Equity Vs Realestate etc…..
However, the asset allocation within Equity is as important. Weightage ought to reflect our view of which sectors would fetch better returns in the time horizon of our Equity investments, a decent spread is necessary. A diversified equity portfolios would see some stocks give returns when others are correcting, and vice versa.
