Understanding Asset Allocation

Build and manage a winning portfolio in bull and bear markets
Understanding Asset Allocation logically explains exactly what you need to know about how to allocate your assets. This comprehensive, highly accessible guide clearly explains the key principles of asset allocation, from selection to rebalancing to risk vs. return. You'll discover how the different asset classes behave, the leading misconceptions about allocation, and how risk profile, time horizon, and needs can impact your investments. No matter your type of portfolio or your level of experience, this easy-to-follow, non-technical rulebook shows you how to:

Apply allocation with separate asset classes or through mutual funds

Protect your investments from large swings in market value

Achieve both your pre-retirement and retirement financial goals

Avoid common allocation mistakes and behavioral blundersComplete with instructive, hands-on examples of real-world portfolios that have exhibited a high level of return, Understanding Asset Allocation arms you with all the tools you need to build and manage a portfolio that experiences higher investment performance and less risk over time.

Introduction 1: Why Asset Allocation is Important 2: Essentials of Asset Allocation 3: Benefits of Asset Allocation 4: Cornerstone Principles 5: Realistic Market Expectations 6: Leading Misconceptions 7: The Psychology of Asset Allocation: Discipline 8: Selecting Assets 9: Applying Asset Allocation 10: Common Mistakes 11: Risk v. Reward 12: The Different Asset Classes 13: How Asset Classes Relate 14: Rebalancing and Managing Your Portfolio 15: Asset Allocation Using Mutual Funds