Asset Allocation

Asset allocation is the strategy of dividing your investment portfolio among different asset classes. Imagine it as a pie chart where each slice represents a different type of investment, like stocks, bonds, or cash. The goal is to find a balance that aligns with your risk tolerance and investment goals. A higher allocation towards stocks offers potentially higher returns but also carries more risk, while bonds offer stability but lower potential rewards. Asset allocation helps you manage risk and work towards your financial objectives over the long term.