Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame. You have to implement asset allocation in your portfolio so that your wealth can grow by utilizing the 0pperturnities available in different asset classes.
"The very best investment you can make is one that “you can't beat,” can't be taxed and not even inflation can take away from you. “Ultimately, there's one investment that supersedes all others: Invest in yourself"
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."
In India the Government Bonds are the safest investment asset as per Banks.
Minimum 18% of your bank balance is held in Government Securities by banks in accordance with RBI’s Policy (Data Feb 2021). This 18% is called as SLR rate which should be maintained by banks in India.
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Generally in India bond and NCD(Non Convertible Debentures) both are treated as same if it is issued by corporate but whenever government raises money by issuing debt instrument then it is called as bond or tbill.
In Financial term Bonds or NCDs are debt instrument by which a issuer shows his indebtedness to the bond/ncd holder by issuing bonds or ncds.
Absolutely not! because in fixed deposit you can get back your money at any time whenever you require just by paying a penalty and in some cases for free but in case of bonds/ncds you can't get back your money from issuer before expiration of tenure whether it be from government or corporate.
Here the answer depends upon your investment philosophy. if you like to earn a regular safer fixed income from your investment then go for bonds and if you like to take risk and want to create your wealth then go for stocks.
