|
| Investment Strategies / Asset Allocation | Mutual Funds |
| Variable Annuity | College Funding | Financial Tips | Newsletters |
Investment
Strategies/Asset Allocation
 What
is asset allocation?
Asset allocation is the process of diversifying
your money across different types of investments. This helps
reduce the risk of volatility associated with any one particular
investment.
Allocating your assets across a spectrum of
mutual funds with varying objectives - from bond funds on
the conservative end to aggressive growth stock funds at the
other - can be an effective way of building a solid investment
portfolio. However, asset allocation does not assure a profit
and does not protect against investment losses.
Investment Strategies - Dollar Cost Averaging
Dollar cost averaging takes the guesswork
out of trying to time the market. You invest a fixed amount
of money at a regular interval (such as weekly or monthly),
regardless of what the market is doing.
With this approach, you buy fewer shares when
the prices are high and more shares when the prices are low.
This helps reduce the effects of market fluctuation on the
average price you pay for your shares.
Most important, it helps you maintain a regular
investing plan so your investment principal can grow over
time. However, since dollar cost averaging involves regular
investing during periods of fluctuating prices, you should
consider if you can afford to continue investing when price
levels are low. Dollar cost averaging does not assure a profit
and does not protect against investment losses in a declining
market.
| Investment Strategies / Asset Allocation | Mutual Funds |
| Variable Annuity | College Funding | Financial Tips | Newsletters |
|
