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Asset allocation
Glossaries
| Term | Main definition |
|---|---|
| Asset allocation | When you invest your money, you need to decide how to proportion (allocate) it between risky, growth-oriented investments (such as stocks), whose values fluctuate, and more stable, income-producing invest- ments (like bonds). How soon you’ll need the money and how tolerant you are of risk are two important determinants when deciding how to allocate your money.
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