Traditional Investing & Portfolio Theory

What is asset allocation?

Asset allocation is the decision of how to divide a portfolio across different asset classes, such as equities, fixed income, cash, and alternatives like crypto. The mix is chosen to match an investor's time horizon and tolerance for risk, and it is widely considered the primary driver of a portfolio's long-term behaviour. For example, a longer horizon might justify a larger share in growth-oriented assets. Allocation shapes the range of outcomes you are exposed to; it manages how risk is distributed rather than removing it.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.