Morningstar’s Guide to Asset Allocation

Asset allocation matters. This process of combining different classes within an overall portfolio can help reduce risk and increase potential returns. From quantitative models to tactical approaches, asset managers use several different ways to produce asset class splits that match their clients’ key objectives.

This guide breaks down the fundamentals of asset allocation and its considerations. When you have a deeper understanding of asset allocation models, you can choose the right approach to build high-quality, robust portfolios.