Home Economics Analysis of How to Structure Asset Allocation Strategies [INFOGRAPHIC]

Analysis of How to Structure Asset Allocation Strategies [INFOGRAPHIC]

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

Financial Planning

Investors want to achieve a sustainable income during their lifetimes (especially during retirement), by investing their savings.

The problem is that markets are unpredictable and often too volatile. Historically, during the last 20-years, stocks have delivered returns varying widely between 2% and 18% per year. The maximum loss during 2008 was 60% and during 2000 was 35%.

To resolve this uncertainty, investors should select investment strategies which generate sustainable profitability with low volatility. Volatility describes the degree to which an asset’s price moves up and down. Volatility describes the investment’s risk. Usually, during periods of high volatility, asset returns tend to be lower and during low volatility asset returns tend to be higher. When an asset’s volatility spikes, it often leads to big asset losses.

See the infographic below which presents analysis of how to structure asset allocation strategies

Asset Allocation

Asset Allocation

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Sheeraz Raza
Editor

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.