What is Asset Mix?
Written by The Content Team | Published on May 22, 2018
Written by The Content Team | Published on May 22, 2018
A: Asset mix refers to the mix of investments in your portfolio. That mix is generally created from the three main asset classes:
Equities (stocks) tend to offer the greatest long-term growth potential and can help you beat inflation; they also carry the most risk.
Fixed Income investments (bonds, some guaranteed investment certificates (GICs) and more) can help you preserve your capital and provide steady income.
Cash and cash equivalents offer security, but also liquidity so that you can take advantage of opportunities as they arise.
Why You Should Care:
Studies, including the landmark Determinants of Portfolio Performance paper published in 1986, suggests that your asset mix is the most important decision you can make in investing — even over choosing your specific investments like stocks, mutual funds, etc.
Key Points to Know:
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