The percentage breakdown between different asset types in a portfolio including cash and equivalents, fixed income and equities.

The proportion of assets invested in cash, fixed-income securities and equities. Asset mix should reflect an investor's investment goals and risk tolerance. As a rule, investors with long-term needs can tolerate the higher risk of equities compared with fixed income securities in the expectation of higher returns. Consequently, their asset mix may be weighted more heavily to equities.

Refers to the proportions of various types of investments held by a pension fund, usually expressed as a percentage of total investments held in bonds, stocks, real estate, etc.

See asset allocation

Assets are distributed among stocks, bonds, and money-market instruments (treasury bills, certificates of deposit, short-term government bonds, and commercial paper).