Diversification & Asset Allocation
Diversification & Asset Allocation
Diversification &
Asset Allocation
Protect your portfolio by spreading the risk the smart way.
Diversification means spreading your investments across different assets, industries, and geographies. The goal is to reduce risk—when one investment drops, others may rise. Think of it as "not putting all your eggs in one basket".
Asset Allocation is how you divide your portfolio between asset classes (e.g. stocks, bonds, cash, alternatives). It's the #1 driver of long-term portfolio performance.
Your asset allocation depends on:
- Age & Time Horizon
- Risk Tolerance
- Financial Goals
"Rule of 100" - 100 minus your age = portfolio % in stocks
A well-diversified portfolio includes assets that don't move in the same way. For example, stocks and bonds often move in opposite directions.
