Video Blog: What Do Diversification And Asset Allocation Mean?
Attorney Jeffrey P. Coleman defines two important qualities of a well-rounded investment portfolio: “diversification” and “asset allocation”.
Asset allocation is allocating your assets among different kinds of investments: you can have a bond with a company or you can own stock in the company. Those are two kinds of different asset ownership. There are also insurance products that can help you redefine and distribute your assets.
Asset allocation and diversification are two of the hallmarks of a well-designed portfolio.