What Is an Asset Allocation Program?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 27 September 2018
  • Copyright Protected:
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An asset allocation program is a type of strategy that aids an investor in evaluating different combinations of assets to include in a portfolio, ultimately settling on the diversity of assets that is most likely to provide the greatest overall satisfaction. Using this type of program makes it easier to balance the investor’s need to limit risk while also maximizing the opportunity to generate the most returns from the portfolio. Many brokers and other types of financial advisors can help structure a program for clients who are not sure how to go about diversifying and managing a portfolio containing different investment types.

There are several options to consider when it comes to learning how to set up an asset allocation program. One of the more common strategies is to seek professional assistance with the task. By working with a broker, dealer or some other type of financial advisor, it is possible to determine what the investor wishes to accomplish, how comfortable the investor is with risk, and what forms of investments would be right for inclusion in the portfolio. As part of the allocation process, the expert could also help the investor decide how much to invest in each of the assets identified as right for the investor’s purposes, making it easier to create a balanced portfolio.


A different approach to an asset allocation program involves using software to put together the basic scheme or layout for the portfolio. The software can provide the means of helping the investor identify how much of the portfolio to devote to diverse investments like stocks, bonds, commodities, currency trades and real estate. Many software programs also allow investors to download data into the program that can be used to predict trends and increase the chances of understanding what must be done in order to achieve and maintain the right balance.

Choosing an asset allocation program is something that requires some thought on the part of the investor. Novice investors will want to go with professionals who can help them learn more about how various markets work and guide them as they acquire the skills and experience needed to accurately predict shifts in the marketplace that would in turn affect the value of the portfolio. Seasoned investors who are confident in the ability to read markets and accurately predict trends may find that using software designed to create and continue an asset allocation program will work nicely, while still allowing the investor to seek input from financial experts when and as needed.



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