Asset allocation

Asset allocation Asset allocation is a frequently referred to – and commonly used – important term in the investment arena, specifically referring to how an investor’s money is allocated to the underlying assets used in the construction of an investment portfolio. The most common asset classes are: Equities: (i.e., shares on the stock exchange). Bonds: governments or corporates need to raise capital and loans are created and sold either to the public or asset management houses. Cash: money market funds and fixed deposits are good examples of this. Property: generally unitised portfolios of corporate property (industrial and office type properties) being let out by a holding company. Alternative investment strategies used by hedge fund managers, (commodities, crypto currencies, leveraged trading in equities and bonds) form part of a wider range of asset classes that could be used in the construction... Read More