Portfolio Metrics

Asset Allocation

Definition

What is Asset Allocation?

The percentage of a portfolio invested across asset classes such as cash, bonds, shares, and property.

Example in practice

A balanced fund allocates 50% to bonds, 35% to equities, and 15% to cash.

Keep learning

Spreading investments across assets, issuers, sectors, or markets to reduce dependence on one exposure.

The degree to which a portfolio depends on a small number of holdings, sectors, or issuers.

A measure of how frequently a fund buys and sells portfolio holdings.

The identity and due-diligence checks a financial institution performs before serving an investor.

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