Asset allocation is not a one-size-fits-all exercise. It depends on age, income, risk appetite, and financial goals. But a few principles hold broadly.
Most financial professionals suggest treating Bitcoin as a satellite allocation, where a smaller position sits alongside a core portfolio of equity mutual funds, debt instruments, and gold. The exact percentage will vary by individual, but the allocation should be one you are comfortable holding through a 50% drawdown without changing your broader financial plans. If a dip of that magnitude would force you to sell, the position is too large.
The core of your portfolio (equities, gold or debt funds) remains the engine of compounding. Bitcoin, allocated thoughtfully, becomes the component that brings diversification and a different return profile over the long run, helping generate better risk-adjusted returns.
