After you understand your investment strategy and your risk profile, the next step to do is to plan your asset and currency allocation. Assume that your investment style is moderate, you are in mid twenties and you do not have immediate requirement for your cash, you can invest in a balanced portfolio. You can consider the following allocation: 50% in cash, 30% in equities and 20% in alternatives (ie commodities etc. They are considered alternatives as they typically have a negative correlation with equities.) Even if equities drop 30% and alternatives drop 30%, the overall impact to your portfolio will […]