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Ways to invest and withdraw
What is asset allocation?
Asset allocation is how you split your money between asset classes such as equity, debt and gold, based on your goals, time horizon and comfort with risk.
How it works
It matters more to your long-term result than the choice of any single fund. Equity drives growth over long periods; debt brings stability and liquidity; gold has tended to hold up when shares or the rupee fall.
Rebalancing means bringing the mix back to its target from time to time, for example once a year, by trimming what has grown most and adding to what has lagged.
Example
With a 60:30:10 equity, debt and gold mix, a strong year for equity might leave you at 70:22:8. Rebalancing moves money back to 60:30:10.
Keep in mind
- No asset wins every year; see how the winner changes on our charts page.
- Your mix should change as goals come closer.
Questions people ask
How often should I rebalance?
Once a year, or when the mix drifts more than about 5 percentage points from target, is common.
Is asset allocation the same as diversification?
Diversification spreads money within an asset class; allocation spreads it across classes.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.