ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -You can consider investing heavily in stocks if you’re younger than 50 and saving for retirement. You have plenty of years until you retire and can ride out any current market turbulence. As you reach your 50s, consider allocating 60% of your portfolio to stocks and 40% to bonds.

Detailed explanation-2: -Conventional wisdom suggests making your portfolio more conservative as you get older and approach retirement. It may be advisable to rebalance your asset allocation, lower the proportion of high-risk stocks, and replace them with safer bonds, as you get older.

Detailed explanation-3: -The general rule is that the younger you are, the more risk you’re able to tolerate. The older you get, though, means you must cut back on the amount of risk in your portfolio. The common rule of asset allocation by age is that you should hold a percentage of stocks that is equal to 100 minus your age.

Detailed explanation-4: -A conservative, or defensive, investment style is a low-risk investment strategy. This style aims to achieve capital security, provide income, and protect the capital invested. To invest in this style, you will likely have a low tolerance for losses and risks and are investing for the short-term.