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Glossary -> Asset Allocation

Asset Allocation

Asset allocation is a strategy employed by investors, with the plan to "not hold all eggs in one basket". Risk is reduced by holding investments in a variety of different sectors, including:

	finance
	utilities
	resources
	consumer, and
	manufacturing

Within these sectors, asset allocation is employed further by diversifying investments across different countries, as well as by investing in different corporations.

Asset allocation can also be employed by not just investing in stocks, bonds and related investments, but also in things such as real estate, or items that are considered listed personal property (works of art, stamps, coins, jewellery, rare books, folios or manuscripts). See the article on Listed Personal Property for information on the tax treatment of this type of investment.

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Revised: December 05, 2025

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