Asset Allocation
Portfolio decision about how much to place in each asset class, shaping risk, return, and liquidity.
Strategic, tactical, and overweight allocation terms used in portfolio construction.
Strategic and Tactical Asset Allocation terms explain how assets are selected, combined, diversified, optimized, and rebalanced inside a portfolio.
Use this branch when asset mix, stock-bond allocation, diversification, portfolio type, optimization method, or rebalancing rule changes the portfolio exposure.
| Term | Use it for |
|---|---|
| Asset Allocation | Asset-allocation, diversification, stock-bond mix, portfolio construction, optimization, or rebalancing terms. |
| Overweight | Asset-allocation, diversification, stock-bond mix, portfolio construction, optimization, or rebalancing terms. |
| Strategic Asset Allocation | Asset-allocation, diversification, stock-bond mix, portfolio construction, optimization, or rebalancing terms. |
| Tactical Asset Allocation | Asset-allocation, diversification, stock-bond mix, portfolio construction, optimization, or rebalancing terms. |
Check the target allocation, asset classes, current weights, benchmark, diversification logic, correlation assumptions, risk budget, rebalancing band, transaction cost, and tax impact.
This page is educational and does not recommend a specific portfolio, security, fund, tax treatment, or account choice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Portfolio decision about how much to place in each asset class, shaping risk, return, and liquidity.
Overweight means holding more of a security, sector, or asset class than its benchmark or neutral allocation.
Strategic asset allocation sets long-term target weights across asset classes based on objectives, risk tolerance, and time horizon.
Tactical asset allocation makes shorter-term allocation shifts around a strategic target based on valuation, momentum, risk, or macro views.