Introduction

Our app provides a personalized asset allocation feature designed to optimize your investment portfolio based on your age and financial goals. This guide explains the methodology behind our recommendations, helping you understand how and why certain allocations are suggested.

What is Asset Allocation?

Asset allocation involves distributing your investments across various asset classes, such as equity, debt, gold, and cash, to balance risk and return effectively. Your portfolio composition significantly influences your financial outcomes, impacting both the potential risk and returns.

Our Methodology

The asset allocation recommendations provided by our app follow the well-regarded "100 minus age" rule, a widely used investment strategy. Here’s how it works:

1. Equity Allocation:

• The percentage of your portfolio allocated to equities is approximately "100 minus your age."
• For example, if you are 30 years old, about 70% (100-30) of your investments should ideally be in equities.
• This approach assumes that younger investors can take on more risk due to their longer investment horizons, allowing them more time to recover from market downturns.

2. Adjustment Window:

• To accommodate different risk tolerances and personal circumstances, our app suggests an adjustment range of ±5%.
• For instance, a 30-year-old might have an equity allocation ranging between 65% and 75%.

3. Allocation to Debt, Gold, and Cash:

• After determining your equity allocation, the remainder of your portfolio is distributed among debt, gold, and cash.
• These asset classes generally provide more stability and less risk compared to equities. The exact distribution depends on market conditions, your risk tolerance, and your financial goals.

Why Choose Our Approach?

1. Simplicity:

• The "100 minus age" rule is straightforward and accessible, suitable for both novice and experienced investors.

1. Flexibility:

• The ±5% adjustment range allows for personalization based on individual risk preferences and financial needs.

1. Balance:

• Investing across a mix of asset classes helps achieve a balanced portfolio, mitigating risks while offering growth potential.

Conclusion

Our personalized asset allocation feature simplifies investing by providing tailored recommendations aligned with your age, risk tolerance, and financial objectives. Understanding the methodology behind these suggestions enables you to make informed decisions and achieve your financial goals effectively.

For personalized advice, consider consulting a financial advisor to tailor strategies to your unique circumstances.

If you have any questions or need assistance, visit our Support Section or contact our Customer Service Team. Happy investing!