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Glossary

From A to Z, discover clear and concise explanations of key terms, empowering you to make informed decisions in the dynamic world of finance with our comprehensive glossary.

This is the process or strategy of choosing between the different kinds of potential assets to put into an investor's portfolio to align with that individual's goals, risk tolerance and investment horizon. Asset classes and their underlying securities, have different levels of risk and return, often performing differently in different market conditions. A well-diversified asset allocation strategy will use a mix of assets which satisfy a client’s appetite for risk while meeting their investment objectives.