Asset allocation

Example investment portfolio with a diverse asset allocation

Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame.[1] The focus is on the characteristics of the overall portfolio. Such a strategy contrasts with an approach that focuses on individual assets.

  1. ^ "Asset Allocation Definition". Investopedia. Retrieved 27 June 2011.

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