Asset allocation involves dividing your investments among different assets, such as stocks, bonds, and cash. The asset allocation decision is a personal one. The allocation that works best for you changes at different times in your life, depending on how long you have to invest and your ability to tolerate risk. The practice of spreading money among different investments to reduce risk is known as diversification, and can be confusing for many novice investors.
In this short introduction, we will be busting some of the jargon around the main asset classes in investing, helping you to understand your options and how you might start to construct a portfolio of investments that could match your own appetite.
Join the discussion to explore:
• The properties of the main asset classes and why you should diversify between them
• Some classic portfolio structures, such as the 60/40
• Things to watch out for when building your portfolio
Investment beginners can expect to expand their understanding of the main asset classes and how they can select between them. Capital at risk.