Simplicity trumps complexity in investing

Your target asset allocation should be determined by your risk appetite and financial goals

Everything in life involves a choice, even the simplest of things: bread and butter or cornflakes for breakfast? Drive or take a cab to the office? Investment decisions are no different. Given the plethora of choices available, how do you build an investment portfolio for your long-term financial goals that minimises regret over choices? The best thing to do is to follow an approach that is easy to understand, adhere to, and execute.

Let me share an investment process that involves just three steps: Decide target asset allocation for your portfolio; decide sub-allocation within a particular asset and choose