Definition of «asset allocation»

Asset allocation refers to the process of determining how an investor's assets should be divided among different types of investments, such as stocks, bonds and cash. The goal is to maximize returns while minimizing risk by carefully selecting a mix of assets that are appropriate for the investor's financial goals, time horizon and tolerance for risk. Asset allocation is an important factor in determining overall portfolio performance, as it can have a greater impact on returns than individual security selection or market timing.

Sentences with «asset allocation»

  • The importance of asset allocation strategies is a no brainer for most investors. (gokinfo.com)
  • Stocks and bonds are two of the most frequently considered asset classes in asset allocation strategies. (cxoadvisory.com)
  • Life cycle funds also approach their investment task of asset allocation in different ways. (aaii.com)
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