Friday, July 1, 2011

Asset allocation

Refers to a portfolio allocation ratio shows the investment in distribution between different asset classes.Relating to asset classes including stocks, bonds, property, cash and overseas investment.Institutional investor asset allocation, objective is to balance the risks, to ensure that the portfolio diversity.Diversification of assets can bring different rewards, such as the return on a bond is low but stable, equity returns but higher risk, cash return is guaranteed.Effective asset allocation to maximize the return and liabilities covered.

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