Asset Allocation for the most part plays a key role in the level of risk you take with you in your investment career. But it also has something to say about the investment returns received.
Overtime you choose an asset allocation you spread your investable money across a specific categories of investments. And this categories of investments is based in your investing goals, your age and your risk tolerance.
For the most part tastes allocation is an investment strategy which aims toward the balance risk and reward by apportioning a portfolio’s assets according to the goals, risk and investment plans to you as an individual investor.