Investor Glossary-asset allocationInvestor Glossary-asset allocationInvestor Glossary-asset allocationInvestor Glossary-asset allocationInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Asset Allocation

The HTML to link to this page
 

Asset allocation is the dividing of one's investment portfolio among different classes of investments. Asset allocation involves choosing among stocks, bonds, cash, and such assets as real estate and precious metals. Investors practice asset allocation to maximize their investment return for the level of risk they are most comfortable with; this frequently (but not always) involves diversification, which spreads risk among several investments. Asset allocation is also based on one's investment goals, since different asset classes have different levels of risk and expected returns. Also, asset allocation can differ according to one's age, since risk tolerance often decreases with age. Financial planners often help individuals with asset allocation by helping them clarify risk tolerance, investment objectives, and desired investment classes.



Rate this asset allocation definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: cancelled check, stock split, ex-dividend, class C shares, balance sheet, dividends payable, deferred tax, 401a, average price per share, stock market close, VIX, current ratio, open position, EBITDA, debt service coverage, irrevocable trust, risk management, required rate of return, retained earnings, inflation, covered put, FICO score, diluted share, APR, quality assurance, 144a, in escrow, wholly-owned subsidiary, ex-dividend date, reverse mortgage, labor relations, 1035 exchange, deferred revenue, Key Rate Duration, Zero Cost Collar, 1031 exchange, option premium, phantom income, LIBOR, command economy, limit order, FTSE, minority interest, margin rate, annual return, implied volatility, real GDP, liquidity ratio, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use