Abstract: In this article, the author reviews the steps an investor should take to make sound asset allocation decisions and offers guidelines on assembling a portfolio that helps meet the investor's needs.The most important decision in structuring a broadly diversified investment portfolio is the allocation among and within the three major asset classes: stocks, bonds and short-term reserves. In selecting the appropriate mix, the investor should weigh four interrelated factors-investment objective, time horizon, risk tolerance and personal financial situation.A well-diversified investment portfolio and a disciplined savings program are important factors in reaching financial goals.
Publication Year: 2006
Publication Date: 2006-12-01
Language: en
Type: article
Indexed In: ['crossref', 'pubmed']
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