asset allocation
nounUK /ˈæs.et ˌæl.əˈkeɪ.ʃən/
US /ˈæs.et ˌæl.əˈkeɪ.ʃən/
The way you split your money among different kinds of things you own.
Her asset allocation puts half her money in stocks and half in bonds.
OTHER MEANINGS
2. The process of deciding how much of a portfolio goes into each investment type.
The advisor reviewed our asset allocation before the market changed.
3. A strategy of spreading money across stocks, bonds, and cash to balance risk and reward.
A balanced asset allocation can help smooth out big price swings.
4. The share of total funds assigned to each category in a plan or budget.
The charity's asset allocation favors low-risk savings.