Asset Allocation §

Group: 5 #group-5

Relations §

• Diversification: Asset allocation is the process of dividing an investment portfolio across different asset classes, and diversification is a key principle in determining the optimal allocation.
• Compounding: Asset allocation strategies can influence the compounding potential of a portfolio by balancing risk and return across different asset classes.
• Wealth Accumulation: Proper asset allocation across different investment classes can help manage risk and optimize returns.
• Risk Diversification: Asset allocation is the process of dividing an investment portfolio across different asset classes, sectors, or geographic regions to achieve diversification and manage risk.