To decide on the asset allocation mix, the two factors to consider are:
1. Your risk profile
2. Your financial planning time horizon
For example, if your time horizon to retirement is 10 years from now, and your risk profile is moderate, your asset allocation mix shall be:-
a. 20% in fixed deposits
b. 20% in low risks instruments such as income funds
c. 20% in medium risks instruments such as growth funds, and income stocks
d. 40% in high risk instruments such as growth funds and growth stocks.