Asset Allocation
How you divide a portfolio among stocks, bonds and cash — the biggest driver of long-term risk and return.
What does asset allocation mean?
Allocation matters more than picking individual investments. A longer time horizon supports more stocks; as a goal nears, you shift toward bonds and cash to protect against a downturn.
Put it to use
Asset Allocation Calculator Your age, ability to tolerate risk and several other factors are used to calculate a desirable mix of stocks, bonds and cash. Investment Questionnaire - Broad Portfolio The Investment Questionnaire is designed to help you create a balanced portfolio from a broad range of investment classes.
Related terms
All glossary terms