Asset Allocation

"A common definition: Asset allocation is high level decision on how to allocate wealth to the broad asset classes such as stocks, bonds, and cash."

* Asset Allocation is key – from the start get the fundamentals right

Asset allocation is actually one of the most important decisions that investors should make before placing their money. In other words, what will determine your investment results is less your selection of individual securities rather than the way you allocate your investment in stocks, bonds, and cash and equivalents.

You can implement your AA in different ways; you could decide to go for a strategic AA; a long term mix, or you could opt for a tactical AA; where you would benefit from market opportunities by changing weights accordingly.