This is the most commonly used term by fund managers and financial advisors who seem to be agreeing on the aspects that makes an investor an AAS. This is commonly mostly among the Indian investors. They seem to have much nerve over how are their equities, both stocks and equity linked mutual funds, performing and how good are the chances to remain more profitable than the others.
If you still did not understand what this term means, then here is something you can do a little introspection with. Pen down your total asset allocation. Make a list of all the investments where your funds have been parked in, stocks, PPF, real estate, gold, fixed deposits etc. Now analyze as to what degree is your attention being allotted to only the equity aspect. Although from the above mentioned list, stocks is the only equity asset, you may realize that your attention is mostly, inclined to its performance. They might just hold 1 % of the entire portfolio value, but its performance greatly affects your sleep.
The growth or fall of that 1 % of equity holdings is definitely not going to significantly affect your portfolio. Yet, any slight changes can force you to act on instincts. It is not something that is being exaggerated, but it is the fact. Ask yourself, how many times have you tried to buy and sell stocks upon receiving unconfirmed news about the performance of your stock.
If you have funds invested in equity linked mutual funds, you could consider switching to mutual funds, which you think might give better returns, as quickly as possible. Not even considering the exit and entry costs that you might have to bear. The fear of getting into a debt of a personal loan or a home loan etc., to partly finance your requirements may throng your mind. Summing all the costs up, you might not gain more. But, you are left unperturbed, assuming the long term benefit you might be gaining.
Avoid getting into this kind of stress where you might bear greater risk of losing lots than sticking to a particular funds and losing little. As an informed investor what you need to know is that, India has an excess population of under invested investor and in this phases of high inflation scare, the best way you can contribute for a healthy economic growth is by investing in long term equities. Investing in a couple of large cap equity funds or even index funds can definitely do the job.
The only thing what you need to realize is that, if you want any difference to be created in your portfolio, you need to invest a significant amount in your equities. Investing about 5% of your total investments in equities is preferred if you really want to make a difference to your total returns.