Asset allocation is an integral part of your investment portfolio strategy. It refers to the process of dividing your investment holdings across different asset classes, such as stocks, bonds, and cash equivalents. Diversiview empowers you with data-driven insights to explore accurate asset allocation and its impact on your portfolio performance.
Here is an example of two different asset allocations and the effect it will have on your expected returns:
This example uses three popular investments: Microsoft (NASDAQ:MSFT), BHP Group Ltd (ASX:BHP), and ExxonMobil (NYSE:XOM). The data is utilising strategy backtesting using over 3-years of historical data to determine the expected annual returns of a portfolio with an initial allocation of $100,000.
It is important to note that this demonstrates the potential benefits of different asset allocations using a specific set of stocks. The results achieved are not guaranteed and may not apply to all portfolios. Accurate asset allocation is a valuable practice, but every portfolio is unique. Market conditions and individual goals significantly impact performance. Diversiview helps you create an optimised portfolio based on your specific risk tolerance and investment goals.