why asset allocation
Asset allocation can potentially limit your exposure to risk. in volatile markets by spreading the money you invest. over a mix of stocks, bonds and short-term investments. Asset allocation is designed to help offset losses in. one asset class with gains in another. Over time, asset. allocation can help you limit the impact of market. fluctuations.
Why is asset allocation so important? An apple a day might keep the doctor away, but you canât live on apples alone. To protect your health, you need a diverse diet that includes all of the basic food groups in the right balance. Thatâs the idea behind asset allocation. A balanced mix of stocks, bonds and short-