Asset allocation

Financial asset allocation is the distribution of investments made in a portfolio among the main asset categories, including monetary instruments, bonds, and asset.

The objective is to seek a balance between risk and optimal investment return, taking into account the anticipated economic and financial environment, the management objective, and the recommended minimum investment horizon.

Asset allocation is one of the fundamental principles of portfolio management.

Traditionally, three main categories of asset allocations are distinguished: conservative allocations (the objective of this allocation is typically to limit the risk of loss), balanced allocations (a compromise between a high expected return and relatively low risk), and dynamic allocations (aimed at maximizing returns by accepting a high level of risk).