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Understanding the Role of Asset Allocation in Mutual Fund Performance

Understanding the Role of Asset Allocation in Mutual Fund Performance

19 May 2025 | 6 mins read

When investing in mutual funds, selecting the right fund is just one part of the equation. A crucial yet often overlooked factor is asset allocation, which plays a significant role in determining the performance and risk profile of your investment. Asset allocation refers to the strategy of distributing your investment across various asset classes, such as equity, debt, gold, and real estate, to achieve the desired balance of risk and return.

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