Mutual Funds Helpline: How asset allocation can maximise your investment returns

Mutual Funds investment is fast gaining traction among the salaried class. Reason for this rise is the simplification of investment in the last few years, say experts. But still, mutual funds investors are not able to understand how to maximise their returns via proper asset allocation. Speaking on the benefit of asset allocation investment Prakash Ranjan Sinha told Zee Business TV, "Asset allocation helps a Mutual Funds investor to beat the heat of market inflation and his or her lifestyle inflation." 

He said that there are some important factors that should be kept in mind while finalising the asset allocation of funds and those factors are: goal, time to achieve that goal and risk-taking ability. 

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"For asset allocation on needs to understand how much he or she can allocate funds to cash, debt and equities because if equities can give maximum return then it may incur losses as well. So, one should allocate funds to each segment so that one segment loss can be pared with other segment gains," said Sinha. 

On returns that one can get in cash, debt and equity plans, Sinha said that equity plans move maximum while debt funds move minimum. But, in debt funds, one can expect a fixed return that makes it attractive among the senior citizen age group of investors. Sinha elaborated that age also makes a difference in asset allocation as it decides how much you have already invested or how much time you have to invest and achieve your goals.