On the Money: Asset allocation
Asset allocation can help reduce the risk to an investor’s total portfolio. The concept involves distributing investment dollars among a variety of investment options, such as bonds and equities.
A wide variety of Web sites offer insights about asset allocation. Here are a few:
¢ Consumer Reports (search “asset allocation”) provides a three-step guide to asset allocation, to help improve investing odds.
¢ Investopedia.com discusses asset allocation strategies.
¢ InvestorGuide.com offers a description of asset allocation principles and investing considerations.
¢ SmartMoney.com features interactive asset allocation worksheet for a target portfolio allocation.
¢ U.S. Securities and Exchange Commission offers a primer on allocation, diversification and rebalancing.