What’s The Risk You’re Willing to Take
Many of us are always under the assumption that we are aware of how much we are spending and how much are we saving for the future. But one needs to make a realistic assessment of their risk appetite. As long as you are willing to tolerate the risks involved in building your portfolio, you are going good. If not, you need to adjust your goals and targets in accordance with your risk tolerance.
Know Your Investments Inside Out
Knowing your investments well plays a very important role in building your asset portfolio. If you’re able to successfully quantify the benefits of each investment that you make, you’ll go a long way in building your asset mix.
For that, you need to make sure that enough research is done and you’re able to demonstrate a situation that reflects a trade-off between risk and return of the investment you plan to make.