How do you determine the right investment mix for your needs? A good first step is to talk to your investment professional about your investment goals.   The Informed Investor's Guide
		Asset Allocation Defined The concept of asset allocation is far from new. In fact, even as far back as 1605, Miguel de Cervantes was doling out the same advice as today's investment strategists — don't put all your eggs in one basket.
		Of course, there's a bit more to it today. In today's terms, asset allocation is the process of selecting asset classes, such as stocks and bonds, and determining their proportions within an investment portfolio. But that's a basic explanation of what might be one of the most important decisions an investor makes. Research shows that it's the asset allocation decision that accounts for nearly 92% of the variation between returns on different investment portfolios. Here's the theory: Individual asset classes have distinct characteristics and historically don't react in tandem under the same market conditions. When some are falling in value, others may be rising. By strategically diversifying your assets, you help offset declines in any one particular class and smooth out the ups and downs of your portfolio. When it comes to shaping an appropriate asset allocation strategy, information is power. That's because it should be built around you. Source: Gary P. Brinson et al. "Determinants of Portfolio Performance," Financial Analysts Journal, July/August 1986. Updated in Financial Analysts Journal, May/June 1991.

Asset Allocation Defined Determining Your Investment Personality Types of Assets in an Asset Allocation Mix Types of Assets in an Asset Allocation Mix 2 Adjusting Your Asset Allocation Next>>