Asset Mix Provides Strategic, Long-Term Investment Approach
One of the wisest investment strategies involves figuring out and building an appropriate asset mix. This is because the investor or, in some cases, the portfolio itself will automatically adjust the different asset classes as they grow and shrink to ensure that the proper percentages are consistently in place. In other words, when the equity class grows beyond a pre-determined percentage value, certain over-priced assets will get sold off and the gains reinvested in lower-priced assets (such as bonds, as an example). This eliminates people’s tendency to chase the winning assets at the worst time possible — when they have grown so much that they are bound to retract.
A lot of different sites, including the Mutual Fund Site offer free asset mix recommendations based on site visitor inputs.