Multiple choice

Asset Allocation is

  1. keeping certificates of the physical securities in proper places

  2. allocation of the available money to all the securities available

  3. allocating the right proportion of funds to equity, debt and money market securities

  4. None of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Asset allocation is the process of dividing investments among different asset classes like equity (stocks), debt (bonds), and money market securities in proportions that match your goals and risk tolerance. It is not about physical storage or putting money in every available security.