The first type is diversification
between different asset classes.
By using free switches, policyholders are able to move their investment
between different asset classes like debt, cash and equity, depending on the risk appetite.
A good way to manage risk is to spread your money
between different asset classes such as cash, fixed interest, property and shares.
The reason is correlations
between different asset classes have increased.
Not exact matches
Diversify
between assets within
different classes (e.g., real estate, stocks, bonds, commodities, private equity)
Diversification is definitely key not just
between cryptocurrencies but all
different types of
asset classes.
The prevailing thinking is that given the
different risk profiles
between the
asset classes, the recent level of reward (yield) does not compensate in the current economy.
In the June 2010 version of their paper entitled ««When There Is No Place to Hide»: Correlation Risk and the Cross-Section of Hedge Fund Returns», Andrea Buraschi, Robert Kosowski and Fabio Trojani investigate the exposure of hedge funds to correlation risk (risk of unexpected changes in the correlation
between the returns of
different assets or
asset classes) and the implications of this risk for hedge fund returns.
By spreading your money both across
different asset classes and
between different investments within the same
asset class, you reduce the risk of losing everything if one of your investments produces poor results or fails completely.
Many well - established providers like Vanguard and Direxion have hopped on the bandwagon through new product offerings that combine
different asset classes or rotate
between sectors.
Asset classes are how investments are categorized
between the
different sectors and sizes of stocks,
different issuers of bonds, real estate, tangibles, and the various flavors of international investments.
Asset allocation is the art and science of spreading money around between different types of investment asset classes to stabilize and increase returns and lower volatility and risk through diversifica
Asset allocation is the art and science of spreading money around
between different types of investment
asset classes to stabilize and increase returns and lower volatility and risk through diversifica
asset classes to stabilize and increase returns and lower volatility and risk through diversification.
First, the
different correlation coefficients
between the
asset classes, and then funding the
asset classes with indices, sufficiently lowers risk without sacrificing returns.
3)
Asset Allocation: The art and science of spreading money around between different types of investment asset classes to help increase and stabilize returns, while lower risks and volatility through diversifica
Asset Allocation: The art and science of spreading money around
between different types of investment
asset classes to help increase and stabilize returns, while lower risks and volatility through diversifica
asset classes to help increase and stabilize returns, while lower risks and volatility through diversification.
Rather than determining a set allocation to various
asset classes at the outset of the investing experience, DAA continually adjusts your allocation
between six
different asset classes based on the recent momentum of those
classes.
Switching is one of the key features of ULIPs, which gives customers the flexibility to switch
between different funds of
different asset classes without any exit load or any implication of capital gains tax.