Asset allocation

Many investors and funds operate on a principle of asset allocation dividing the holdings in a portfolio between different investment or asset types according to set percentages. One you will often hear about is the 60/40 split between stocks and bonds, another would be 50 percent stocks, 40 percent bonds, 10 percent cash. But equally well a portfolio of stocks could have set percentages allocated to small capitalization vs large capitalization, domestic vs international stocks, divided by industry sector or growth vs value stocks.

Share and Enjoy !