Strategic Asset Allocation

"It is a standard asset allocation that uses a fixed ratio to distribute assets among different investment categories. The ratio is typically determined based on the investor profile’s criteria such as age, financial objectives or risk tolerance."

The advantage of SAA is the fact that it invests in different asset classes, this way spreading the risk (because the idea is that, different asset classes are affected by different factors and are thus reacting differently). The limit of such method is that it is tied to a long term mix and is thus less flexible to take advantage of short term opportunistic potential for gains.

Check your individual AA!

SAA: the above chart is a Standard Long term asset mix,
40% Equities 35% Bonds 25% Cash
This mix is a standard allocation that takes into account investment objective and age of the investors, reflecting diversification of assets and preventing any risk of sharp decline