Asset Allocation

Asset allocation is the process of strategically dividing your investment dollars among the major asset classes, including stocks, bonds and cash equivalents, according to your goals, time frame and tolerance for risk.

Because different investments respond differently to changing economic and market conditions, they typically do not perform in tandem. To make the most of this dynamic, successful investors allocate their assets among these different types of investments. Asset allocation ensures your portfolio is not dependent on any single investment class, which may help lower your overall portfolio volatility and enable you to weather the markets’ ups and downs. In fact, a landmark study has shown that asset allocation is more important than specific security selection or moving in and out of the markets at the right time. (see chart)

By taking into account your goals, time frame and tolerance for price fluctuations, asset allocation helps you achieve your ideal mix of risk exposure and return potential. Use our Asset Allocator to determine a mix of stocks, bonds and cash that may be right for you.

For investors that don't have the time or inclination to strategically allocate their investment portfolios, BB&T offers the Capital Manager Funds.

Investment considerations: The use of asset allocation, diversification and rebalancing does not guarantee a profit nor protect against a loss.