Strategic Asset Allocation: Basics

Strategic Asset Allocation: Basics

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

Strategic asset allocation refers to the long-term allocation of an investment portfolio to various asset classes based on an investor's goals and tolerance for risk. A portfolio's strategic asset allocation incorporates a base policy mix that should remain unchanged even when the market moves up or down. The main determinants of a portfolio's strategic asset allocation are studied and we look at how asset allocations can be weighted and how to maintain those weights within particular ranges.