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Asset Allocation

Asset allocation refers to the strategic distribution of capital across different asset classes such as stocks, bonds, cash, real estate, or alternative investments. It is one of the most important drivers of long-term return and risk management, and according to numerous studies, it has a greater impact on overall portfolio performance than the selection of individual securities.

The optimal allocation depends on the investor’s individual risk profile, investment horizon, liquidity needs, and financial goals. In practice, a distinction is made between strategic asset allocation—the long-term foundational structure—and tactical asset allocation, which involves short-term adjustments based on current market conditions.

In wealth management, asset allocation forms the foundation of all investment advice and portfolio management.

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