Asset allocation


noun

a financial strategy for reducing risk in an investment portfolio in order to maximize return
Examples

Asset allocation means dividing investment funds among markets to achieve diversification and/or a combination of expected return and risk consistent with the investor’s objectives.
Word Origin

1950

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  • Asset value

    noun the value of a share in a company calculated by dividing the difference between the total of its assets and its liabilities by the number of ordinary shares issued Historical Examples The asset value of a library is dependent upon a variety of conditions. Papers and Proceedings of the Thirty-fourth Annual Meeting of the […]

  • Asset-backed

    adjective of securities, having collateral being the return on a series of lending arrangements, such as mortgages or credit agreements

  • Asset-backed fund

    noun a fund in which the money is invested in property, shares, etc, rather than being deposited with a bank or building society

  • Assetless

    a useful and desirable thing or quality: Organizational ability is an asset. a single item of ownership having exchange value. assets. items of ownership convertible into cash; total resources of a person or business, as cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate (opposed to ). Accounting. the items detailed […]


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