Asset Allocation
I think this is not only limited to Unit Trust, but any investment instrument as well.
The allocation in UT mainly has 3 categories, Equity fund, Balanced fund and Bond fund.
An investor need to review his asset each year to determine if re-allocation is required, due to needs change and age change.
The simple rule of thumb, when we are approaching retirement age, we will need to reallocate high risk instrument to a lower risk instrument. Same go for child education plan, when we approach the time for withdrawal for the kids, then, we should start re-allocating the fund into a lower risk instrument, to warrant the return gained in previous years.
Everything doesn't run away on the principle of 'financial planning'.
Have you start thinking and plan for yourself and your beloving one ?
