This episode of the Your Recipe for Financial Success podcast was published on 25 March 2021. You can listen again by heading to our Episodes page, or on your favourite podcast player.

In this episode, Julie, Becky and Emma are carefully measuring out all of the ingredients needed in asset allocation and how they make our investments taste so good.

Episode Highlights

Here’s what you need to know about asset allocation, at a glance:

• Asset allocation is a technique used when investing. The aim of asset allocation is finding a balance in your portfolio by investing your money into different areas and sectors
• Your asset allocation is usually linked to your attitude to risk, as each asset class has a different risk level associated with it
• Asset allocation is different to funds, funds usually sit within an asset class. For example, a fund investing in UK companies would fall under the UK Equity asset class
• It is important to help build a diverse portfolio to protect your investment if there are problems in one asset class. As a rule the other asset classes will help to cushion the fall and may even rise as the other is falling
• Some examples of asset classes: Cash, Fixed Interest, UK Equities, Developed Markets, Emerging Markets.

Now that you have a belly full of asset allocation, why not check out our other podcasts on our episodes page?