Building a risk-adjusted portfolio requires long-term planning. It is equivalent to a test match in cricket. The asset allocation needs to be restructured from time to time to reap the benefits of high-returns with the increasing age. More than 90% of the investors spend their energies on market timing and stock selection and do not focus on asset allocation, which can align their financial goals. Hence, appropriate asset allocation is the need of the hour. Many financial advisers recommend 100 minus your age should be allocated towards equity and the remaining should be invested in the debt funds. However, this asset allocation might not be suitable for everyone. The ideal way is to chalk a financial plan and work towards it.
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