Finance Library
InvestingIntermediate 4 min read

Asset Allocation

How you split your money matters more than which stock you pick.

A classic 60/30/10 mix: stocks for growth, bonds for stability, cash for flexibility.

What it is

Asset allocation is the mix of stocks, bonds, and cash (and sometimes real estate or commodities) in your portfolio.

Why it matters most

Studies repeatedly show that the long-term return of a portfolio depends far more on its allocation than on which specific stocks or funds you hold inside each bucket.

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