What is asset allocation? | American Funds

Develop an investment strategy

Retirement Planning

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.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional or downloaded and should be read carefully before investing.