Asset Allocation Rules

Don't Put All Your Eggs in One Basket

Asset allocation is 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.

The 60/40 Portfolio

The traditional 60/40 portfolio allocates 60% of capital to equities for growth and 40% to bonds for stability and income. While the exact ratio may vary, the principle of diversification remains critical.