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Asset Allocation

What is Asset Allocation?

Asset allocation is how you divide your investments among broad categories such as stocks, bonds and cash. The mix largely determines how much your portfolio can grow and how far it may fall.

Why it matters

Many investors find allocation matters more than picking individual stocks. A longer time horizon generally allows a higher share of stocks, while nearer goals call for steadier assets.

Read the guide
What Is Diversification? Don’t Put All Your Eggs in One Basket

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General education, not investment, tax or legal advice. Read our disclosures.