What Is Asset Allocation? | Fidelity Investments

Asset allocation involves spreading your investments among different assets like stocks, bonds or cash. But why is it important and how can you use it to help strengthen your own portfolio? Watch our video as we answer those questions and much more. 00:00 Intro 00:07 What is asset allocation? 00:21 Example of asset class performance 00:42 What to think about when buying stocks 01:07 What to think about when buying bonds 01:25 Pros and cons of cash 01:56 Building a conservative portfolio 02:10 Building a growth portfolio 02:35 A closer look at domestic stocks 02:50 A closer look at mutual funds 03:01 What is a diversified portfolio? 03:17 What are asset allocation funds? 03:42 What are target date funds? 04:25 Sign off Questions? Drop them below 👇 and we’ll reply right in the comments. To learn even more about asset location visit: https://www.fidelity.com/insights/inv... • To see more videos, subscribe on YouTube:    / fidelityinvestments   • Follow Fidelity on Reddit:   / fidelityinvestments   • Follow Fidelity on Instagram:   / fidelityinvestments   • Follow Fidelity on TikTok:   / fidelityinvestments   • Follow Fidelity on Facebook:   / fidelityinvestments   • Follow Fidelity on LinkedIn:   / fidelity-investments   • Follow Fidelity on Discord:   / discord   • Ask Fidelity on X:   / fidelity   Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 1170872.2.0