New Delhi, Jan. 21 -- The late market veteran Rakesh Jhunjhunwala often reminded investors that wealth creation does not begin with stock selection, but with asset allocation. An old video of Jhunjhunwala that is making rounds on the social media platform X shows the well-tracked market investor suggesting that, in investing, the most critical decision is asset allocation.

So the first task of an investor is asset allocation, Jhunjhunwala said. Equity, debt, gold, real estate, or even alternative assets such as art would depend on the investor.

According to him, nearly 60% of an investor's long-term returns come from getting asset allocation right, while only 40% depend on selecting the right individual assets.

To illustrate the power ...