What Does Asset Allocation Mean?

MS SAMEER (CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVISOR)   (14938 Points)

02 July 2010  
What Does Asset Allocation Mean?
An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.

The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and return, so each will behave differently over time.