An investment strategy known as asset allocation, also called diversification, can help an investor achieve financial goals, as well as...

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An investment strategy known as asset allocation, also called diversification, can help an investor achieve financial goals, as well as reduce a portfolio’s exposure to risk in the marketplace.

The idea is to distribute money among a variety of investment options, such as bonds, equities and mutual funds.


A variety of Web sites offer advice on developing an asset-allocation strategy. Here are a few:


American Association of Individual Investors

www.aaii.com/promo/hastings/allocation.shtml


Article discusses different facets of asset allocation.

Bankrate.com


www.bankrate.com/brm/news/dollardiva/20000615a.asp

How to develop an allocation investment strategy.


Investment Company Institute Education Foundation

www.ici.org/i4s/bro_i4s_


diversification.html

Covers benefits of portfolio diversification, with sample plans.


InvestorGuide.com

www.investorguide.com/igu


investportfolio.html

Overview of asset allocation principles and risks involved.


SmartMoney.com

www.smartmoney.com/oneasset/


Has asset-allocation worksheet.