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Asset Allocation and Diversification Explained


  • Learn about diversification
  • Learn about assets
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There is risk involved whenever money is involved. Any investment has the potential to lose money, whereas holding merely cash will see its value gradually depreciate due to inflation. While risk cannot be eliminated, it can be changed to better suit a person's unique investment objectives.

Asset allocation 

A money management technique that specifies how capital should be allocated across different asset classes in an investment portfolio is known as asset allocation. On the other hand, the distribution of capital among those asset classes may be referred to as diversification.

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