Asset allocation

Allocation is how you divide money among stocks, bonds, and cash.

The mix matters

Asset allocation is the split of a portfolio among broad types of investments, such as stocks, bonds, and cash. It often influences risk more than any one stock pick.

Each asset behaves differently

Stocks can offer growth but can swing sharply. Bonds often aim for steadier income, while cash is stable but may lose purchasing power to inflation.

Match the mix to the person

A sensible allocation depends on your goals, time horizon, and ability to handle losses. There is no one perfect percentage for everyone.

Continue with Long-Term Investing lessons.

For education only. Quoliv uses fake money and does not provide personal financial advice.