Basic steps to asset allocation consist of:
- Choosing which asset classes (stocks, bonds, money market, real estate, precious metals, etc.)
- Selecting the ideal percentage (the target) to allocate to each asset class
- Identifying an acceptable range within that target
- Diversifying within each asset class
Asset allocation can be an active process to varying degrees or passive in nature. Asset allocation strategies listed should be used only as general guidelines on how investors may use asset allocation as a part of their core strategies.
- Constant-Weighting Asset Allocation
- Strategic Asset Allocation
- Tactical Asset Allocation
- Dynamic Asset Allocation
- Insured Asset Allocation
- Integrated Asset Allocation
Read full article "Portfolio Asset Allocation Strategies"