Asset allocation
How you split your money across asset classes such as stocks, bonds and cash savings.
In short
As of 8 October 2026Asset allocation is how you split your money across asset classes such as stocks, bonds, cash savings or real estate. It drives your risk and potential return more than the choice of individual securities. One example is 70 % in an equity ETF and 30 % in a savings account. When price moves shift those shares, you readjust through rebalancing.
Asset allocation means: how much of your money is in stocks, how much in bonds, how much in savings accounts or other investments? This split drives your risk and potential return more than the choice of individual securities.
Many people separate a safe part, such as their emergency fund, from a growth part in equity ETFs. How large the stock share can be depends on when you need the money and how well you cope with losses. Because the weights shift as prices move, you readjust from time to time through rebalancing.
Example: you put 70 % into a global equity ETF and 30 % into a savings account. If stocks rise strongly, their share may reach 78 %, and you shift some back. The basics are in the chapter on risk and diversification.
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.