asset allocation

USAGE SUMMARY

The phrase "asset allocation" is correct and usable in written English.
It is typically used in the context of finance and investment, referring to the strategy of dividing an investment portfolio among different asset categories. Example: "A well-thought-out asset allocation can help minimize risk and maximize returns over time."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

What's the right asset allocation?

The New York Times

Your asset allocation should reflect your goals.

The New York Times

Automatic asset allocation and rebalancing.

Harvard University

"It's part of their asset allocation strategy".

The New York Times

Think of it as asset allocation.

The New York Times

Asset allocation: many professional investors are bound by certain asset allocation requirements.

Columbia University

Confusing diversification with asset allocation: Asset allocation goes beyond simple diversification.

The New York Times

Harvard tries not to vary its asset allocation.

The New York Times

So everybody's asset allocation got really messed up".

The New York Times

So is the idea of asset allocation dead?

The New York Times

Solution: Asset allocation has proven itself over time.

The Washington Post

Expert writing Tips

Best practice

When discussing "asset allocation", specify the asset classes involved (e.g., stocks, bonds, real estate) to provide clarity and context.

Common error

Avoid using "diversification" and "asset allocation" interchangeably; while related, "asset allocation" involves strategically choosing asset classes based on goals and risk tolerance, whereas diversification focuses on spreading investments within those classes.

Linguistic Context

The phrase "asset allocation" functions as a noun phrase that describes the process of distributing investments across different asset classes. It is often used as the subject or object of a sentence, as demonstrated in Ludwig's examples, such as "What's the right <span class="lh">asset allocation?"

Expression frequency: Very common

Frequent in

News & Media

53%

Academia

23%

Formal & Business

23%

Less common in

Science

1%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "asset allocation" is a very common and grammatically correct noun phrase referring to the strategic distribution of investments across various asset classes. As supported by Ludwig AI, this phrase is most frequently encountered in News & Media, Academia, and Formal & Business contexts. When using "asset allocation", ensure you're not confusing it with "diversification", and always specify the asset classes involved for clarity. Alternatives include "portfolio diversification" or "investment distribution strategy". By following these guidelines, you can effectively communicate your investment strategies.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

portfolio diversification

Focuses on the aspect of reducing risk by spreading investments across various assets.

investment distribution strategy

Emphasizes the planned approach to dividing investments among different assets.

capital allocation plan

Highlights the structured plan for assigning capital to different asset categories.

resource allocation in investments

Focuses on the distribution of resources within the investment domain.

investment mix

A more concise way to refer to the combination of assets in a portfolio.

strategic asset deployment

Emphasizes the planned and purposeful placement of assets.

funds allocation approach

Highlights a specific method for allocating funds.

diversified investment portfolio

Focuses on the outcome: a portfolio that is spread across multiple assets.

spreading investment risk

Highlights the risk reduction aspect of allocating assets.

investment asset management

Focuses on the management of different asset classes within a portfolio.

FAQs

How does "asset allocation" differ from diversification?

"Asset allocation" involves strategically dividing investments across different asset classes (like stocks, bonds, and real estate), whereas diversification is spreading investments within those asset classes. Think of "diversification" as a subset of the broader "asset allocation" strategy.

What factors should influence my "asset allocation"?

Your "asset allocation" should reflect your financial goals, time horizon until those goals are needed (e.g., retirement), and your tolerance for risk. A younger investor with a long time horizon might choose a more aggressive "asset allocation" with more stocks, while an older investor nearing retirement might prefer a more conservative "asset allocation" with more bonds.

How often should I reassess my "asset allocation"?

You should reassess your "asset allocation" periodically (e.g., annually) or whenever there are significant changes in your life, such as a new job, marriage, or a major expense. Rebalancing your portfolio ensures it still aligns with your goals and risk tolerance. Consider using an "asset allocation strategy" and seek professional help if needed.

What are some common "asset allocation" models?

Common "asset allocation" models include aggressive (primarily stocks), moderate (a mix of stocks and bonds), and conservative (primarily bonds). Target-date funds automatically adjust their "asset allocation" over time, becoming more conservative as you approach the target date. You can also consult with a financial advisor to determine a personalized "capital allocation plan".