Allocation

In the context of wealth management, allocation or asset allocation refers to the strategic distribution of assets across different asset classes such as equities, bonds, (liquid) investments in real estate, or commodities.

Allocation is the concrete implementation of the investment strategy in practice. It is based on the investment horizon, personal risk tolerance, and investment objectives.

Good allocation effectively diversifies risk and makes a portfolio more resilient to market fluctuations. At True Wealth, allocation is clearly shown using the colored «donut.» Extensive individual adjustments are also possible within the scope of personal risk ranges.

We discuss the most important features of the individual asset classes in the following video podcasts:

• The most popular asset class: equities
• The second most important asset class: bonds
• Investing in commodities: an introduction
• Real estate or REITs: Which is the better investment?