Asset Allocation

Balancing risk with returns

Asset allocation is the most important decision an investor makes. This approach is designed to help offset risk by building a portfolio that includes holdings in all three asset classes (stocks, bonds and cash). This ensures that your investment portfolio is divided between aggressive (higher risk), moderate (moderate risk) and conservative (low risk) investments. The percentage of holdings invested in different asset classes should reflect your investment profile - in other words, your long-term goals, tolerance for risk and time horizon.

Statistically, the mix of stocks, bonds and other instruments accounts for more than 90% of the variability in an investor's return, over the long run. This strategy, combined with intelligent global diversification, will reduce volatility, leading to greater accumulation of growth over time.

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