How does asset allocation help you?
Improve your chances for more consistent returns over time.
- By investing in several different asset classes, you can improve your chances of participating in market gains, and lessen the impact of poor-performing asset categories on your overall portfolio returns.
Reduce overall risk.
- Portfolio diversification can reduce the amount of volatility you experience by simultaneously spreading market risk across many different asset classes.
Stay focused on your objectives
- A well-allocated portfolio alleviates the need to constantly adjust investment positions to chase market trends, and can help reduce the urge to buy or sell in response to the market’s short-term ups and downs.