Asset Allocation

Asset allocation is the process of dividing investments among asset classes such as equity, debt and others based on your goals, time horizon and risk considerations.

You choose a mix that fits each goal. Longer horizons may tolerate more equity volatility; nearer goals often need more stability. Allocation should be reviewed as life changes — not set once forever.

Every mix has trade-offs. Equity can fall sharply; debt is not risk-free. Diversification reduces some risks but cannot eliminate market risk.

• Glossary: Asset Allocation
• Goal-Based Investing

• Goal Calculator