A method of allocating various assets such as stocks, bonds, mutual funds and cash equivalents (also as per geographical areas) to meet the investment objectives of investors.
The apportionment of an investment portfolio among different asset classes (shares, bonds, property, cash and overseas investments) from time to time in accordance with the investment outlook of the investor or investment manager.
Dividing funds among many different markets for diversification purposes in order to reduce risk.
The apportionment of one's securities among three classifications: stocks, bonds, and cash items.
The process of spreading your assets among different types of investments.
The proportion of your total capital you invest in the different asset classes. This will be largely determined by your risk profile.
When you divide your money among various types of investments, such as stocks, bonds and short-term investments, you are allocating your assets. The way in which your money is divided is called your asset allocation.
Deciding the proportion of a portfolio that should be invested in each security type, market and sector.... more on: Asset Allocation
Weighting of a portfolio of investments among stocks, bonds and money market instruments as market conditions suggest.
The strategy of spreading your investment funds across categories of assets such as Stocks, Bonds and Cash Equivalents to help offset risks and rewards, based on your goals, time horizon and risk tolerance.
The distribution of a Fund's investments among various asset classes or sectors (such as shares, property, fixed interest and cash).
deciding what percentage of your portfolio to invest in stocks, bonds, and money market securities.
Asset Allocation is a systematic approach to investing among different categories of investments. It attempts to determine the best way to divide Investable Assets into the three main Asset Classes: Cash & Equivalents, Fixed Income, and Stocks. Asset Allocation is one type of Diversification. Diversification, investing in a number of different investments, which attempts to reduce the overall risk of your investments. The ideal Asset Allocation can vary by investor, depending on the investor's time frames, Risk Tolerance, overall financial position, and other factors.
The process of determining the optimal division of an investor's portfolio among different assets. Most frequently this refers to allocations between debt, equity, and cash. Bloopers & Blunders: Asset Allocation an Art
Investment approach that involves dividing an investor's funds among different types of assets to manage risk exposure and increase opportunities for overall gains in the portfolio. sset Financing (Asset-Backed Lending) Financing that converts assets (e.g., receivables, inventory, and real estate) into working cash in exchange for a security interest in those assets.
The process of deciding what type of assets (stocks, bonds, cash, real estate, precious metals and all tangible investments) you want to own and the percentage of each.
The way an investor maximizes return and minimizes risk through investment choices appropriate for the prevailing market conditions. For example, when interest rates are low, investors allocate more of the portfolio to equity; and conversely, when interest rates are high, investors allocate more to interest-bearing securities. See also portfolio.
An investment strategy that diversifies a portfolio among different types of asset classes, such as cash, bonds, stocks, and other investments, each with different risk-return characteristics. A percentage of the portfolio is allocated to each asset class depending on the investor's profile and investible assets. The portfolio is often re-balanced to the original asset mix from time to time as the market values of the asset classes change. A sound asset allocation strategy allows investors to achieve an optimal risk-return trade-off for a portfolio.
The process of investing money in predetermined proportions in different types of assets to create a collection of assets with the desired expected return and the desired expected risk characteristics.
A good way to achieve diversification is by dividing your money among mix of investments across the risk categories. Asset allocation allows you to achieve diversification at a level of risk appropriate for you while still giving you the chance to reap the potential rewards of investing in riskier investments
In a variable annuity, distribution of assets across multiple classes, e.g., stocks, bonds, cash, in order to meet an individualâ€(tm)s financial goals in terms of risk and length of investment. Can reduce risk and maximize returns on the investment.
Portfolio management where different types of investments (stocks, bonds, money market equivalents, etc.) are used to derive maximum returns within certain risk parameters. These are used to compensate for variations in risk factors, such as investor's age, financial acumen and his or her total financial assets.
determining the optimal distribution of funds among various types of assets, including stocks, bonds, and cash, to achieve investment objectives.
The process of evaluating how to distribute assets among different asset classes for investment purposes. KPERS invests in seven asset classes: domestic equity, international equity, fixed income, treasury inflation protected securities (TIPS), real estate, alternative investments and cash.
The way investments are allocated (distributed and weighted) among different types of investment vehicles. The objective of asset allocation is to diversify risk while obtaining the greatest possible return consistent with the investor's risk tolerance.
A bank's funds management strategy in which funds are assigned to securities and loan asset categories and then reallocated as loan demand changes.
The percentage breakdown of how assets are invested in a portfolio. The primary asset categories of a portfolio are cash, bonds and stocks.
The assignment of investment funds to broad categories of assets. For example, and individual allocates funds to bonds and equities. Likewise, an investment manager may allocate clients' funds to common stocks representing various industries.
the way in which a portfolio of assets is spread among various types of investment. For example, our Diversified Growth investment option has an asset allocation as outlined elsewhere on this website - click here for details.
a representation of how a portfolio is invested among the various available asset classes. For example, a balanced fund may have an asset allocation of 30% Australian shares, 25% international shares, 10% property, 20% fixed interest, 10% international fixed interest, 5% cash.
Distribution of the assets of a portfolio of funds or securities to optimise diversification according to return and the investor's risk.
Spreading investment assets among stock, bond, and cash funds, usually based on investment goal and personal comfort with various types of investment risk.
Percent of a person or an entities total capital distributed to different asset classes.
The diversifying of assets among various types of investments. Asset allocation varies from individual to individual, depending on risk tolerance, investment objectives, and other factors.
The process of optimizing endowment portfolios by determining a mix of assets (cash, stock, bonds, etc.) with the maximum expected level of return at a given level of risk.
A plan for dividing a portfolio among different classes of securities in order to preserve capital buy protecting the portfolio against negative market development.
Diversification of your investments, usually between U.S. and international equities, fixed income, real estate, and commodities.
the way your portfolio is invested among the various available asset classes e.g. a fund may have an asset allocation of 30% International Shares, 25% Australian shares, 20% property, 15% fixed interest, 10% cash
The strategy of lessening risk by investing assets in a range of different types of investments, including cash, bonds and stocks.
The distribution of total funds available with the scheme into instruments of various types such as stocks, bonds etc. based on the scheme's investment objective as detailed in the offer document.
the breakdown in percentage terms of where a fund's monies are invested. Please refer to page 12 of the Uniting Growth Fund Offer Document for Asset Allocation under current Investment Mandate.
The process of determining the optimal investment portfolio among a mix of assets such as stocks, bonds, cash & real estate.
a representation of how a portfolio is invested among the various available asset classes.eg a balanced fund may have an asset allocation of New Zealand shares, international shares, property, New Zealand fixed interest, international fixed interest, and cash.
The allotment of invested funds among the various types of assets such as cash, cash equivalents as term deposits, fixed-income investments, stocks, and real estate or other types of investments.
An investment technique that diversifies a portfolio among different types of assets such as cash equivalents, stock, fixed income investments, precious metals, real estate and collectibles.
The distribution of a pool of assets among various asset classes, including, but not limited to, domestic and foreign bonds, cash, real estate, venture capital, etc.
The process whereby an investment manager decides which type of assets to invest in and the proportion of total capital to be allocated to each class.
Repositioning assets within a portfolio to maximize a return for a specific level of risk.
A deterministic way to balance a portfolio with different asset classes to increase returns and lower volatility. Research suggests that over 90% of the variability of investment performance comes from asset allocation, rather than skill.
This is the process of determining how you want to invest among the different investment options.
The distribution of a portfolio among different asset classes (i.e. between UK and overseas equities, or between different overseas equities markets).
The "mix" of a portfolio between different asset classes.
To meet an investor's objectives, this investment practice divides funds among different markets to achieve diversification for expected returns and/or risk management purposes.
The process of spreading your savings over various classes of investments such as Treasury bills, bonds and stocks. Your asset allocation strategy depends on factors such as investment objectives, age, time horizon and risk profile. To see how your RRSP portfolio should be divided among various asset classes, please click here.
A process of investing fund assets in various types of financial instruments such as domestic stocks, international stocks, bonds, cash equivalents, real estate partnerships, etc. Click here to view recent MAF asset allocation by underlying fund and DSF asset allocation by investment style.
Refers to the manner in which a person's total assets are invested in the various asset classes.
How your investments are spread across various asset classes
Apportioning of investment funds among categories of assets, such as Cash Equivalents, Stock, Fixed-Income Investments, and such tangible assets as real estate and precious metals. Also applies to subcategories such as government, municipal and corporate bonds. Asset allocation affects both risk and return and is a central concept in personal financial planning and investment management.
A financial strategy for investing money in a variable annuity into various asset classes — such as stocks, bonds and cash — based upon your financial goals, risk tolerance and time horizon. Asset allocation has two main advantages: it can help increase investment returns and reduce risk.
Asset allocation refers to the manner in which an individual's total assets are invested among the various asset classes.
A system method of investing that distributes assets to a broad array of investments
Dividing or apportioning of investment funds among different asset classes such as stocks, cash equivalents or bonds; or subsets of asset classes, such as corporate bonds, Treasury bonds and municipal bonds. Asset allocation affects both risk and reward in investing and is an important concept in financial planning and investment management.
The mix of stocks, bonds, cash equivalents and other assets in which your capital is invested.
Investment strategy whose purpose is to enhance total return and/or reduce risk by diversifying assets among different types of stocks, bonds and money market investments; i.e., variety is the spice of investment life.
the process of deciding in which assets to make investments and what proportion of total capital available should be allocated to each choice.
How a fund manager spreads the underlying investments of a fund. In most cases, the portfolio is divided across a range of assets such as equities bonds or cash. The purpose of asset allocation is to reduce risk by diversification.
It is the process of allocating the overall corpus to different assets like equities, bonds, real estate, derivatives etc.
The diversification of one's assets into different sectors, such as real estate, stocks, bonds, and forex, to optimize growth potential and minimize risk.
Distribution of an investment amount across the various asset classes with the aim of optimising the risk-return profile.
The way investments are distributed and weighted among different asset classes to attempt to yield the greatest possible return consistent with the investor's risk tolerance.
The proportion of investment or assets placed in various geographic regions, industry sectors or types of security.
It is a means of diversifying the risk associated with a fund and refers to the distribution of total funds available with the fund into instruments of various types such as stocks, bonds etc. based on the funds investmetn objective.
The apportionment of one's investments among three main asset classes: stocks, fixed income and cash equivalents.
The spreading of investments across a variety of assets, typically stocks, bonds, real estate and cash.
The placement of a certain amount of one's investment capital within different types of asset classes (e.g., 50% stock, 30% bonds, and 20% cash).
Dividing investments among various asset classes.
The strategy of dividing investment dollars among various types of investments.
A measure of how assets in a portfolio are divided among different investment categories such as equities, fixed income and cash.
The selection and combination of different investment types or asset categories in a portfolio to achieve a desired investment goal while reducing the overall risk of the total portfolio.
Allocation of investments to different asset classes such as participations, equities and fixed-income securities.
the strategy behind an investor's decision to construct an investment portfolio in a certain way. Stocks, bonds, and cash (short-term investments) are the three principal asset classes or investment types used in asset allocation.
Investment strategy mixing types of assets, typically discussed in terms of percentages put into certain categories of investments: i.e., common stocks, bonds, insurance companies, cash, or real estate.
How you decide to invest, or allocate, your money between various types of funds (e.g., international, domestic, equity, income). Also refers to the allocation of investments held in a mutual fund's portfolio.
A term to describe how your money is invested. In most cases, the fund manager will spread money across a range of different assets and companies in order to diversify your holdings and help to spread risk.
The percentage of assets held in each asset class in a portfolio.
The splitting of assets between the various asset classes such as equities, fixed interest and cash.
Investment practice that distributes funds among different markets (forex, stocks, bonds, commodity, real estate) to achieve diversification for risk management purposes and/or expected returns consistent with the outlook of the investor, or investment manager.
The ratio of different types of asset classes within an investment portfolio, eg. Cash, Shares, Property.
How you divide your money between the various options / asset classes.
Asset Allocation is the process of diversifying your investments into different asset categories (such as stocks, bonds, cash, real estate) that complement your investment time horizon and risk tolerance.
The division of funds between different assets (items of value such as property, financial instruments, commodities and cash) with the goal of diversifying ones personal holdings to manage specific risk / reward expectations.
Investment assets can be placed into different categories for classification purposes. When an Investment Advisor assigns a percentage of the account investments to each of these categories, he is completing an Asset Allocation. Asset Allocation is an acceptable way for a manager or trustee to diversify risk and increase return in an investment portfolio.
dividing investment dollars among various asset classes, typically among cash investments, bonds and stocks.
Asset allocation is a strategy for maximizing gains while minimizing risks in your investment portfolio. Specifically, asset allocation means dividing your assets on a percentage basis among different broad categories of investments, including stocks, bonds, and cash.
Shows the proportion of your portfolio invested in different geographical areas or sectors or in different types of investment (e.g. equities, fixed interest).
Dividing instrument funds among markets to achieve diversification or maximum return.
The practice of distributing a certain percentage of a portfolio between different types of investment assets, such as stocks, bonds, mutual funds, cash, real estate, options, etc. By diversifying an individual's asset base, one hopes to create a favorable risk/reward ratio for a portfolio.
Allocation is the process of deciding which investment option, or combination of investment options, are best aligned with your financial goals, needs and time horizon, followed by the distribution of your assets accordingly. Asset allocation allows you to control your risk-level, potentially maximizing your return.
An employee's division of money between different types of investment choices. An example of asset allocation would be 70 percent stocks and 30 percent bonds.
Asset allocation means dividing your assets on a percentage basis among different broad categories of investments, including stocks, bonds, and cash. Asset allocation is a strategy for reducing the risk associated with investing. Since your portfolio is spread among different asset classes, it's less likely that they will all perform badly at the same time. Finding the right mix of assets depends on your age, your assets, your financial objectives, and your risk tolerance.
The diversification of investments among categories of assets, such as short-term investments, stocks and bonds, as well as tangible assets, such as real estate, precious metals, and collectibles. Asset allocation is useful in balancing risk and return in pursuit of various investment goals.
Dividing your investment portfolio among the major asset categories. The most important decision you will make.
The process of apportioning investments among various asset classes, such as stocks, bonds, commodities, real estate, collectibles and cash equivalents. Asset allocation affects both the risk and return of investors, and is often used as a core strategy in basic financial planning.
Apportioning of investment funds among asset classes, such as cash, equities, and fixed income.
The apportioning of investment dollars among various asset classes, such as cash investments, bonds, and stocks. Also known as investment mix.
The process of apportioning investment funds among different categories of assets such as stocks, bonds, cash and tangible assets such as real estate, precious metals and collectibles.
the division of a portfolio between high-risk (equities) and low-risk (bond and cash) components. This division is the main controller of risk and is the most important decision the investor makes.
The process of dividing investments among different kinds of asset classes, such as stocks, bonds and cash, to try to meet specific financial goals. Asset allocation is used as an effort to reduce investment risk.
A combination of stocks, bonds, and cash used by investment mangers to achieve investment goals.
The allotment of investment funds amongst various types of assets such as cash equivalents, stock, fixed-income investments, real estate, and precious metals. It also applies to sub-classifications such as industry groupings of common stocks and government, municipal, and corporate bonds. Asset allocation affects both risk and return. See: Cash Equivalent; Common Stock; Fixed Income Investment
The apportionment of an investment portfolio among different asset classes (shares, bonds, property, cash, international investments) from time to time, in accordance with a superannuation fund's investment policy.
Dividing an investment portfolio among the major asset categories, ex;, stocks; bonds; cash; real estate. The underlying idea is that if you own assets that behave differently, you'll always have one or two investments that are doing okay.
The process of strategically distributing one's money among various asset classes, such as stocks, bonds and money market securities. Asset allocation is used to seek maximum investment returns while minimizing investment risk. Prudent asset allocation has been found to be a key determinant of investment portfolio success.
The division of investments among different categories of assets, such as stocks, fixed-income investments, real estate and cash equivalents. Asset allocation is designed to help offset risk.
The process of repositioning assets within a portfolio to maximize return for a given level of risk. This process is usually done using the historical performance of the asset classes within sophisticated mathematical models.
An investment strategy at which allocates available funds among different financial instruments (stock market, bond market, Forex market…etc), in order to achieve the goal of diversification of risk.
Selecting and weighting different asset classes (shares, bonds, property, cash and overseas investments), in an investment portfolio. Also known as Investment Mix.
The strategic distribution of available capital over various investment instruments bonds and money market paper. Investments are also spread over a variety of geographical regions and currencies.
Selecting and weighting assets in an investment portfolio.
The decision regarding how an investor's funds should be distributed among the major assets (e.g., equities, bonds, money markets, commodities).
The process of dividing investor funds among several classes of investments to coincide with the investor's goals, investment period and tolerance for risk. Investments with the highest potential return often have correspondingly high risk of loss. Conversely, investments offering the lowest risk usually have the lowest returns. By allocating assets among different classes of assets the investor seeks to maximize return while managing the associated risk within the comfort level of the investor.
The percentage split of an investment portfolio among different asset classes (shares, bonds, property, cash etc).
The composition of a person's investment portfolio designed to minimize risk. It should be based on a person's investment objectives.
The process of distributing portfolio investments among the various available investment categories.
An investment strategy that divides an investor's investment dollars among a variety of complimentary asset classes such as money market funds, bonds and stocks, in an effort to provide an enhanced return in an up market and downside protection in a down market.
The apportionment of funds in a 401(k) plan or other investment portfolio among different asset classes, for example, 35 percent in domestic common stock funds, 35 percent in bond funds, 15 percent in foreign stock funds, and 15 percent in money-market funds.
Investing your assets in such a way as to build an investment portfolio that minimizes risk while maximizing return. Diversification is a key ingredient in successful asset allocation.
Asset Allocation as the name suggests is the process of sorting the overall investments under the various assets - real estate, stocks, bonds, cash, etc. This is one of the main area od concern in financial management.
Investing in a combination of various assets or different types of investments in order to diversify and reduce the risk.
Allocating your investment assets over a number of investments, (stocks, mutual funds, bonds, money market account, etc).
This is the apportioning of investment funds among categories of assets, such as cash, equities and fixed income, and such tangible assets as real estate, precious metals and collectibles. Asset allocation affects both risk and return and is a central concept in personal financial planning and investment management.
Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor’s objectives.
Asset Allocation's focus is on obtaining long-term growth from investment decisions between equity, bonds or other securities. On the equity allocation, we also focus on what portion should be in "value" equities or "growth" equities. Outside research analysts help investment managers make decisions on asset allocation. There are also economic and market indicators which provide insight into possible future trends for market segments and the economy in general. Analysis of the Treasury Yield Curve, Federal Reserve Interest Rate Trends, Spread Between 10 Year Treasury Bonds and 10 Year BBB Corporate Bonds, S&P 500 Market Valuation Model and Sector Analysis, among others, provide insight for positioning the Active portion of a portfolio defensively or more aggressively. Such indicators are not precise, but do give indications of trends and will be used in formulating asset allocation decisions.
The mix of asset classes in which an individual's funds are invested. The most common classes include stocks, fixed-income investments, foreign securities, real estate and cash.
An investment strategy that involves committing specific percentages of a portfolio to different asset types such as stocks, bonds, or money market instruments. The portfolio should be rebalanced periodically to maintain the target percentages.
The dynamic distribution of investment assets into various categories such as bonds, common stocks, real estate, etc. in response to assumptions regarding future economic and market conditions.
The mix of assets in an investment among various asset classes or sectors.
Dividing investments among different kinds of assets, such as stocks, bonds, real estate, and cash, to balance the risks of investing. Asset allocation models vary based on an individual's specific financial goals and situation.
this is an investment approach, in which you divide your client's assets into a variety of categories. For example: 50 percent in stocks, 40 percent in bonds and 10 percent in cash.
The spreading of risk through an expanded form of diversification, in which investment capital is placed in several different markets (such as real estate, stocks, bonds and the money market) rather than in one market.
Investment strategy which seeks to lower overall risk in a portfolio through diversification across asset classes.
The act of dividing your investments into different investment categories, including domestic and foreign stocks, bonds, cash accounts and other assets.
A financial strategy that spreads an investor's assets across a number of different investment categories, such as domestic and foreign stocks, bonds and cash. Diversification has the potential to reduce overall investment risk.
The process of deciding what kinds of assets you want to own, and the percentage of each. Tactical asset allocation is a sophisticated form of market timing in which an investor decides how much to allocate to each asset class based on market indicators, particularly interest rates. As conditions change, the percent allotted to each asset class changes.
Spreading your money among several different types of investments, such as stocks, bonds, and mutual funds rather than just stocks, to increase returns and reduce your risk. Also referred to as portfolio diversification.
The process by which you select how the amount of your investment is spread over each of the asset classes. The main asset classes are shares, property, bonds and cash in a managed investment, this task can be the responsibility of the fund manager.
How a portfolio is invested, either in terms of types of holdings or regions.
The process of dividing investor funds among several classes of assets to limit risk and increase opportunities.
The process of dividing investments among different kinds of assets, such as stocks, bonds and cash, to optimize the risk/reward trade off based on an individual's goals.
dividing investments among a variety of categories (stocks, bonds, cash, etc.)
Division of funds among different markets, instruments or investments to diversify risk and/or create exposure to areas considered attractive, consistent with an investor's objectives.
The percentage allocation of an investor's total portfolio in different asset classes.
The process of dividing your money between different types of assets, such as stocks, bonds and cash, to generate the overall return you need in a manner that is consistent with your risk tolerance.
The way in which you weight investments in your portfolio to try to meet a specific objective.
The process whereby one decides which type of assets to invest in and the proportion of total capital to be allocated to each class of asset.
The practice of spreading money within a portfolio across different investments, including equities, bonds and cash deposits, and/or across different geographical markets.
A strategy that investors use to distribute and diversify their assets among multiple investment products.
The process of diversifying a fund's assets between different asset classes, geographic or industry sectors to optimise the risk/return trade off.
Asset Allocation is a systematized approach to investing among different categories of investments. It attempts to determine the best way to divide investable assets into three main asset classes: Cash & Equivalents, Fixed Income, and Stocks. Asset Allocation is a type of diversification which attempts to reduce the overall risk of an investment by investing in a number of different investments. Each investor's Asset Allocation strategy can vary, depending on the investor's time frames, risk tolerance, overall financial position, and other factors.
A mutual fund that seeks to optimize the mix of stocks, bonds, and cash at any given time.
The allocation of an investment portfolio amongst asset classes. What defines a suitable “Asset Allocation” is a function of a particular investor's time horizon and level of risk tolerance.
An investment portfolio that divides assets among major asset categories, such as bonds, stocks or cash, usually to balance risk and create diversification.
The process of diversifying the investments in different kinds of assets such as stocks, bonds, real estate, cash in order to optimize risk.
investment strategy used to enhance total return and/or reduce risk by diversifying assets among different types of stock funds, bond funds, and fixed rate accounts; a key concept in financial planning and money management
Investment strategy whereby investors diversify assets among stocks, bonds and money market investments. Purpose: to reduce investment risk.
The relative weightings of regions, sectors and types of investments (i.e. equities, bonds, etc) within a portfolio, determined by client's risk and return requirements and the market outlook. This is central to financial planning and investment management.
The investment process by which the investment manager chooses or allocates funds among broad asset classes such as stocks and bonds.
An investment strategy that involves spreading assets among different types of securities such as stocks, bonds and money market instruments. back to the top
The process of combining different types of assets to build a portfolio.
The distribution of investments across categories of assets, such as equities, bonds and cash. Active managers will change asset allocation to improve fund's performance based on their forecast returns for each asset class.
The process of determining what proportions of your portfolio holdings are to be invested in the various asset classes.
An investing strategy that distributes an investor’s dollars among multiple investment products or asset classes. Asset Allocation affects both risk and return and is a key point in planning personal financial planning and investment management.
The process of determining how investment funds will be apportioned among different classes of financial assets, such as stocks and bonds. Many financial advisers believe that the investment mix has a greater impact on long-term portfolio performance than does any individual investment.
Asset allocation refers to where your assets are distributed within a fund, for example, 40% equity, 40% fixed income and 20% money market.
Asset allocation refers to the specific distribution of funds among a number of different asset classes within an investment portfolio; it is diversification put into practice. Funds may be distributed among a number of different asset classes, such as stocks, bonds, and cash funds, each of which has unique types of expected risk and return. Within each asset class are several variations of the asset, meaning that there are levels of risk within each asset class. Asset allocation involves determining what percentage of funds will be invested in each asset. Determining how to allocate funds depends on the individual investor. The investor's goals, time frame, and risk tolerance will all affect how an investor wishes to allocate funds based on the investor's desired return and acceptable risk.
An investment strategy where your investments are spread across a variety of asset classes so that a portion of your assets has the opportunity to benefit from the market's "best performers".
Dividing funds among different investment alternatives in order to attempt to achieve diversification or maximum return.
The diversification of investments across several different asset classes. It is dependent on the investment objectives of the investor or investment manager.
The diversification of investments among various assets classes - such as large-cap U.S. stocks, intermediate bonds, real estate, precious metals, etc.
A financial strategy for investing money into various asset classes -- such as stocks, bonds and cash -- based upon a person's financial goals, risk tolerance and time horizon.
The planned percentage distribution of your investment assets into various categories such as reserves, fixed income, and equities.
There are three major asset classes: cash and money equivalents, fixed income, and equities. The division of money among these asset classes, in order to achieve various goals, which include risk level, income and appreciation potential, is called asset allocation.
The division of holdings among different types of assets, such as domestic stocks, international stocks, bonds, real estate and cash. Used by investors to diversify risk. Financial planners refer to asset allocation when discussing portfolios. Asset allocation could refer to an individual's portfolio as well as a mutual fund's diversification.