Thursday 27th October 2016                 Change text size:

Investment term of the day: asset allocation

dictionary By doctor-a via stock.xchng

Asset allocation is the act of deciding which categories of assets the investable amount should be invested in and what proportion should be in each category.

By allocating assets properly and in a balanced way, investors can reduce risk and increase opportunities and returns. Investors should distribute their assets over the three main asset classes – equities, fixed income, and cash and equivalents – in a way that reflects their goals and investment timeframe.

Investopedia definition

Wikipedia page

There are currently no comments.

Register with Blue and Green

To leave a comment on this article, fill in your details below to register, alternatively if you are already registered you can login here

Subscribe for our Newsletter

Time limit is exhausted. Please reload CAPTCHA.

A password will be e-mailed to you.