You need to remember the factors that would affect your asset allocation strategy. Some of them are as follows:-
Understanding risk appetite, risk capacity and risk tolerance is very important before making any investments or any investment decisions.
Risk taking capacity, appetite and tolerance changes depending upon various information and factors. This can be understood with the help of following points:-
How your Risk Profile changes in your complete life cycle and how it impacts your Financial Profile.
The investment choices that an individual makes should be aligned to their financial risk profiles. The risk profile defines how much risk that particular investor is willing and able to take.