With Example. Asset allocation is the process of dividing an investment portfolio among different asset classes, in order to achieve a desired level of risk and return. The three main asset classes are stocks, bonds, and cash. There are many different ways to allocate assets, but a common approach is to use a mix of … Read more
An advisor account is an investment account that is managed by a professional investment advisor. The advisor provides investment advice and makes decisions on behalf of the account holder. The main benefit of an advisor account is that it can provide access to professional investment advice and management. This can be especially helpful for investors … Read more
Rebalancing a portfolio is the process of restoring the original asset allocation mix of a portfolio. This is done by selling some assets that have increased in value and buying others that have declined in value, in order to maintain the desired level of risk. Over time, the composition of a portfolio will change as … Read more
Churn rate is a measure of how often customers cancel or fail to renew their subscriptions to a service. A high churn rate indicates that customers are not satisfied with the service and are cancelling their subscriptions. A low churn rate indicates that customers are satisfied with the service and are renewing their subscriptions. What … Read more
The 80-20 rule definition is a investing rule of thumb that states that 80% of the return from a portfolio is generated by 20% of the holdings within that portfolio. This rule is often used by investors to help them focus their attention on the most important holdings in their portfolio. There are a few … Read more
A granular portfolio is one in which each security is individually selected and weighted according to its contribution to the overall portfolio objectives. The process of constructing a granular portfolio is often referred to as security selection. Granular portfolios are typically used by professional investors, such as hedge fund managers, who have the time and … Read more
Joint tenants with right of survivorship (JTWROS) is a type of co-ownership in which each tenant has an undivided interest in the property and a right of survivorship, meaning that upon the death of one tenant, the property automatically passes to the surviving tenant(s). JTWROS is often used in the context of real estate ownership, … Read more
The Rule of 70 is a simple way to estimate how long it will take for an investment to double in value. The rule states that the number of years it will take an investment to double can be approximated by dividing 70 by the compound annual growth rate (CAGR) of the investment. For example, … Read more
