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What is asset allocation?

Asset allocation is how a portfolio is split among the major investment classes: stocks, bonds, cash, gold, real estate.

Studies show the split among asset classes explains most of a portfolio's long-term result — more than stock picking or market timing. It's the most important investment decision you make.

The practical rule: the longer your horizon and the higher your loss tolerance, the more equity you can afford. An old shortcut suggests "100 minus your age" as your stock percentage.

Concrete example

A thirty-year-old investing for retirement can handle 80–90% stocks; someone buying a house in three years should keep that money almost entirely in low-risk instruments.

How you see it in InsiderFlow

On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.

Frequently asked questions

Is there a perfect asset allocation?

No: it depends on your horizon, goals and ability to endure losses without panic-selling.

How often should it change?

Only when your life changes (age, goals, income), not when the market's mood changes.