Most advisors recommend using a combination of risky and risk - free assets, or at least
using low risk assets (like high quality short - term bond funds) to reduce the risk of your portfolio to a level that's appropriate for you.
Not exact matches
Since Olymptrade provides its members with a chance to invest in small amounts, the amount of available and tradeable
assets is
low, which helps greatly in reducing the
risk factor when
using Olymptrade's services.
Youth Development Activities and strategies that involve youths in decision making,
use youths as resources to implement programs, and build youth
assets and strengths that result in improved academic performance and
lower -
risk behaviors.
Building a portfolio consisting of
low -
risk assets is achieved primarily by
using one of two principal
low - volatility strategies.
Diversification is
using asset classes with
low correlations to
lower overall portfolio
risk.
Investors
use this strategy in an attempt to balance
risks and returns by spreading their investments between high -
risk and
low -
risk assets.
The money market in your investment account serves the purpose of
lowering portfolio
asset correlation and can be
used to buy
risk assets when opportunities arise.
By contrast, there are other firms, such as Personal Capital and my firm, Rebalance IRA, where we have similar investment philosophies and similar
use of technology, but we have real, live investment advisors who deal extensively with clients and match them with the right
asset allocation,
low - cost underlying portfolios, very
low cost, and disciplined rebalancing, which is really an essential
risk management and return tool.
Asset allocation tools are useful to see how mixing different asset classes boosts returns or lowers risk but they should be used with cau
Asset allocation tools are useful to see how mixing different
asset classes boosts returns or lowers risk but they should be used with cau
asset classes boosts returns or
lowers risk but they should be
used with caution.
At the end of October, the fund was 91.3 % long and 35.3 % short,
using leverage to invest more than 100 % of
assets, but
lowering risk by investing both long and short.
MPT seeks to identify a portfolio allocation designed to offer the highest potential reward with the
lowest amount of
risk possible for any given level of
risk,
using broad diversification and historical data about
asset class price fluctuation for this purpose.
Credit Default Swap
Risk: The
use of credit default swaps («CDS») may not always be successful and payments made by the Fund pursuant to a CDS will tend to
lower returns if the reference
asset's credit quality remains steady or improves.
This is called rebalancing, and you're free to do it as often as you wish, as a lot of the great returns and
low risk due to
using asset allocation comes from this forced «selling high» and «buying
low» process.
If the optimizer thinks adding a particular
asset provides a diversification benefit, which could potentially lead to
lower overall portfolio
risk, without
lowering the return significantly, the program will choose to
use this
asset at the exclusion of others.
Step 7) The main advantages of
using asset allocation over market timing and / or stock picking, are the relatively
low risk and good returns.
•
Asset allocation is the only non-derivative technique you can
use to reduce
risk (
lower overall portfolio volatility), increase income, and get better returns, all at the same time.