™A $10,000 portfolio with $6,000 in stocks, $3,000 in bonds and $1,000 in cash has a 60/30/10 allocation; the suitability depends on the goal and horizon.
Risk & Portfolio
Asset allocation
How a portfolio is divided among asset classes such as stocks, bonds and cash.
Plain-English context
Put the definition to work.
Do not choose a stock/bond percentage without connecting it to liabilities, liquidity needs, horizon and loss capacity.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — asset allocation and diversification