New England Financial offers an Asset Allocation service to help you best determine how to diversify your assets.
Asset allocation is a disciplined, long-term financial strategy for investing money into various asset classes, based on your investment goals, time horizon, and risk tolerance. Asset allocation can help you determine your investment risk by using a strategic mix of asset classes rather than try to pick the best performing investment. With asset allocation, your investment is spread among various asset classes, such as stocks, bonds, and cash. Within these broad categories, there are different types of stocks and bonds, as well as different investment strategies, such as growth and value investment styles.
Diversification is an important benefit of asset allocation because it reduces the negative impact when there is a downturn in one asset class. While diversification through an asset allocation strategy is a useful technique that can help reduce overall portfolio risk and volatility, there is no certainty or assurance that a diversified portfolio will enhance overall return or outperform one that is not diversified. An investment made according to an asset allocation model neither guarantees a profit nor prevents the possibility of loss.
Choose Your Own Asset Mix
Using an Asset Allocation Questionnaire, your New England Financial representative will work with you to determine the asset allocation model that best fits your investment goals, time horizon, and risk tolerance. You will be able to determine whether you are a conservative or aggressive investor, or somewhere in between. Of course, you can also choose your own mix, or choose one of the Automated Investment Strategies, or select an Asset Allocation Portfolio (available July 2007). Of course, no investment strategy can guarantee a profit or prevent a loss.
Your Asset Mix Is Important
Most of your return is attributable to your asset allocation. Only about 8.5% results from other factors.1
Determinants of Portfolio Performance:1
