Asset Allocation
It refers to implementing specific techniques to balance risk in a portfolio. You might divide assets into categories, such as bonds, stocks and real estate.
Each type of investment "behaves" differently, so any downturns in one asset may be overcome by the success of another asset. It can protect you against loss and can remain one of the most important decisions you can make about your investments.
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Learn more about moneyandinvestments with this collection
How to create a diversified portfolio
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