The development of an appropriate asset allocation* mix is the first step in constructing an investment portfolio that is aligned with your core goals and objectives. Spreading risk among various asset classes and investments vehicles is a way to diversify your portfolio.
A landmark study by Brinson, Singer and Beebower in 1991, determined that asset allocation is the most important long-term determinant of investment results. Past performance, stock selection, and timing investments were far less influential in achieving long-term results.
- Asset Allocation 91.5%*
- Market Timing 1.8%
- Stock Selection 4.6%
- Other 2.1%
*Asset allocation does not assure a profit or prevent a loss. It is a method used to help manage investment risk.
