It is important that you make money when you invest. For the sake of simplicity, let us remove theone off investments such as purchasing or constructing a house property or buying a farm house from the scope of discussion and consider only the regular investments you make every day such as bank deposits, bonds and securities, shares and stock and so on. Especially when it comes to investing in financial instruments, it is important that you consider the role of asset allocation. If you think investing in a volatile asset is riskier, the only way you can have the cake and eat it too is by doing asset allocation.
If you consider the returns you can get by investing in bank may not fetch you higher returns after adjusting for tax, you have to consider adding other assets such as equity and gold to your portfolio. Similarly, if you consider investing in shares and stocks is a very risky thing to do, you must add investments such as bonds and fixed deposits to your investment portfolio.
The Process of Optimisation 