What is Asset Allocation?

in #investing7 years ago

Here's a video I made about asset allocation. Enjoy!

What is Asset Allocation?

Asset allocation is an investment strategy that aims to balance risk and reward.
It is how an individual splits up their assets through a portfolio.
It's said to be the most important decision that an investor makes.

Assets are appropriated according to:

  • The individual's goals
  • risk tolerance
  • investment horizon

There are Three main asset classes

  • Equities - (Stocks)
  • fixed-income (Bonds)
  • cash equivalents (currencies)

asset allocation is one of the most important decisions that investors make.


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tnx for this helpfull video

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thanks for this information

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