Asset allocation
How your investments are split between shares, bonds and cash.
It drives both expected return and how much the value swings. A mix you can hold through a 30 % fall is better than a higher-return mix you abandon in a crash.
Related terms
- RebalancingBringing your portfolio back to its target mix, for example 80 % shares and 20 % bonds, after markets move.
- DiversificationSpreading money across many companies, countries and asset types to reduce the risk of any single loss.
- VolatilityHow much an investment’s value swings from year to year.
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Investing
Investing in Switzerland: broad ETFs, domicile and fees
A plain guide to a low-cost portfolio from Switzerland: why broad index funds, how fund domicile affects withholding tax and what fees do over 30 years.