Asset allocation...

Any proponent of a medium to long-term investment horizon will fully endorse the benefits of a sensible asset allocation. Asset allocation can improve both diversification and performance, although at times, these aims could conflict as different asset types and sectors move in and out of favour. Above all however, any proposed asset allocation should always be relevant to the investor's current risk profile, investment and income requirements and there should also be a consideration for the investor's tax status. The reasons why good asset allocation improves diversification should be ...