[{"data":1,"prerenderedAt":72},["ShallowReactive",2],{"term:asset-allocation":3},{"term":4,"related":59},{"id":5,"title":6,"body":7,"category":35,"description":36,"extension":37,"faq":38,"meta":45,"navigation":46,"path":47,"related":48,"seo":52,"stem":53,"takeaways":54,"__hash__":58},"terms\u002Fterms\u002Fasset-allocation.md","Asset Allocation",{"type":8,"value":9,"toc":29},"minimark",[10,15,19,22,26],[11,12,14],"h2",{"id":13},"understanding-asset-allocation","Understanding Asset Allocation",[16,17,18],"p",{},"Asset allocation is the mix of asset classes in a portfolio. Each class carries a different level of risk and expected return, so the mix sets most of a portfolio's long-run behavior.",[16,20,21],{},"Investors choose a mix based on their goals, time horizon, and tolerance for losses, then rebalance to keep it on target as prices move.",[11,23,25],{"id":24},"example","Example",[16,27,28],{},"A 60\u002F40 portfolio holds 60% in stocks and 40% in bonds. If stocks rally and grow to 70% of the portfolio, the investor sells some stocks and buys bonds to return to 60\u002F40.",{"title":30,"searchDepth":31,"depth":31,"links":32},"",2,[33,34],{"id":13,"depth":31,"text":14},{"id":24,"depth":31,"text":25},"investing","How a portfolio is split across asset classes such as stocks, bonds, and cash.","md",[39,42],{"q":40,"a":41},"Is there one correct asset allocation?","No. The right mix depends on your goals, how long you will invest, and how much short-term loss you can accept.",{"q":43,"a":44},"How often should I review my allocation?","Many investors review once a year, or when their goals or circumstances change.",{},true,"\u002Fterms\u002Fasset-allocation",[49,50,51],"diversification","rebalancing","risk-tolerance",{"title":6,"description":36},"terms\u002Fasset-allocation",[55,56,57],"Asset allocation is the split of a portfolio between stocks, bonds, cash, and other assets.","The mix drives most of a portfolio's risk and long-run return.","Longer time horizons usually allow a larger share of stocks.","pVVch5Z9azVavirmA4cI_VHwhwlSir-isP9N-K0KyM4",[60,64,68],{"title":61,"description":62,"path":63},"Diversification","Spreading money across many investments to reduce the impact of any one loss.","\u002Fterms\u002Fdiversification",{"title":65,"description":66,"path":67},"Rebalancing","Buying and selling holdings to bring a portfolio back to its target mix.","\u002Fterms\u002Frebalancing",{"title":69,"description":70,"path":71},"Risk Tolerance","How much loss an investor is willing and able to accept in pursuit of returns.","\u002Fterms\u002Frisk-tolerance",1793226379124]