Asset allocation is the execution of an investment strategy that seeks to balance risk versus reward by varying the percentage of each asset in a portfolio of investments in accordance with the risk tolerance, goals, and investment horizon of the investor. The traits of the total portfolio are the main topic of discussion.
The allocation that is customised for you is the best allocation. As a general rule, the suggested allocation has typically been 60% equities and 40% bonds. However, given the poor rate of return on bonds today, several financial experts propose a new benchmark of 75% equities and 25% bonds.
