Many investors start by asking for the “best fund”. A more useful starting point is deciding how much risk the overall goal can carry.
Start with the goal and deadline
A goal due in two years cannot usually absorb the same market risk as one that is twenty years away.
Allocate risk before picking products
Decide the broad role of growth, stability and liquidity before moving to individual product selection.
Diversification is not duplication
Owning many funds that hold the same securities can add complexity without adding meaningful diversification.
Rebalance deliberately
Market movements can shift the portfolio away from its intended mix. Periodic rebalancing is a process decision, not a market prediction.
This article is general information and does not consider your income, liabilities, goals, risk profile or tax situation. Market-linked investments can lose value. Insurance is subject to policy terms.