Asset allocation is the spreading of your investment funds across different asset classes, such as equities, fixed income, property and cash. Each asset class has its own income and growth characteristics and often a combination is required to both control risk, and achieve your investment objectives. We carry out asset allocation via the investments we recommend to you.
An additional benefit of asset allocation across asset classes is diversification. This means that it is unlikely all the assets will move in the same direction at the same time. This can provide some protection in a downturn or period of weakness in financial markets.
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