Asset allocation provides the foundation
to manage portfolio risk and volatility

Asset allocation balances the risk versus reward ratio by adjusting the percentage of each asset in an investment portfolio according to risk tolerance, goals and timeline

An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations.

Asset Classes

ASSET CLASS

Examples

EQUITY

Stocks, Mutual Funds

FIXED INCOME

Treasury Bills, Bonds, Notes, Annuities, CDs

CASH EQUIVALENTS

Cash, Savings Accounts

REAL ESTATE

Personal Property, Commercial Real estate, REIT

DERIVATIVES

Futures, Commodities, Options