What is asset allocation?
Asset allocation means putting portions of your money into different types of investments — like stocks and bonds. If some of your investments lose value, a diversified allocation may help reduce the impact.
The following articles can help you choose your asset allocation.
- Pros and cons of stocks and bonds See how the two major investment types compare.
- Managing risk Learn about the different kinds of risk that come with investing. Your comfort level with each kind will help you make your investment choices.
- Diversify your assets Investing in a variety of assets can help reduce risk.
- Invest for your time horizon Your investment strategy should take into account how long you have until retirement.
- Choose the right mutual funds Find out about different mutual fund types and how they provide diversification.
- Frequently asked questions about rebalancing After you’ve settled on an investment approach, you’ll need to review and possibly readjust your portfolio regularly to keep on track. Here’s how.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s summary prospectus and prospectus, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing.