Asset allocation

{
  "id": "MLC-T-INS-000453",
  "term": "Asset allocation",
  "field": "Insurance and risk management",
  "definition": "The strategy of dividing an investment portfolio among different asset classes, such as stocks, bonds, and real estate, to achieve a desired balance of risk and return. This approach aims to diversify investments and reduce overall portfolio volatility. Insurers use asset allocation to manage their investment portfolios, aligning them with their liabilities and risk tolerance.",
  "url": "https://mlchart.com/terminology/insurance/asset-allocation/"
}