Asset allocation

May 1, 2019 by  
Filed under Nigeria Stock Exchange

An investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon (timeline). The three main asset classes—equities, fixed-income and cash/cash equivalents—have different levels of risk and return, and each will behave differently over time. Asset allocation is the single most important thing an investor should practice.

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