Asset Allocation

Asset allocation is simply allocating your assets to a variety of investments to protect against volatility or market downturns. An example would be to allocate money to large cap stocks, small cap stocks, a growth mutual fund, and an international fund.

Different types of investments increase or decrease in price at different times. Some investments are highly volatile (experience large price swings during the year), while others are much less volatile, (experience smaller price swings during the year). Possessing a variety of investments will help to protect you against market downturns and volatile investments, (if you choose to place volatile investments in your portfolio).

A variety of investments will help to balance the value of your portfolio. As some investments occasionally go down or remain constant, others may go up. This up and down act will help to balance the value of your overall portfolio. Understanding market downturns and volatility will enable you to hold your investments long-term.

Contact a UVEST Investment Consultant to go over your options for Asset Allocation.