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strategic asset allocation

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Financial Dictionary

Strategic Asset Allocation

A portfolio strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation.

Investopedia Commentary

At the inception of the portfolio, a "base policy mix" is established based on expected returns. Because the value of assets can change given market conditions, the portfolio constantly needs to be re-adjusted to meet the policy.

Related Links

Five Things To Know About Asset Allocation
Asset Allocation Strategies
Achieving Optimal Asset Allocation
A Guide To Portfolio Construction

See also: Asset, Asset Allocation, Portfolio, Tactical Asset Allocation

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