By: Neerja Caprihan
The happy vibes of Easter egg hunts stay with us long after the baskets have been put away. At the end of a hunt, the attractive, variously-colored eggs peeking out of a solid-looking basket does give a sense of accomplishment and carry weight, literally. Interactive Advisors provides you with a similar offering of an Asset Allocation portfolio that gives you the facility to invest in portfolio equivalents of Easter baskets. The Asset Allocation Portfolio is a proprietary investment portfolio designed and managed by IA.
Asset Allocation portfolios are diversified multi-asset portfolios that are dialed up or down for risk, offer good diversification across different asset classes, and attain this diversification by investing in low-cost, liquid ETFs. Diversification is about buying a basket of securities that tend to do well (or poorly) at different times. IA tries to combine different asset classes in the portfolio to provide income, growth and stability during different economic conditions while taking into account the various asset classes’ historical performance. Think of an Asset Allocation portfolio as a goody bag or a hamper! Since diversification entails not putting all your eggs in one basket, investing in an Asset Allocation portfolio means actually investing across multiple asset classes by means of one single offering.
The custom Asset Allocation Portfolio feature allows you to adjust up or down the default ETF allocation in your Asset Allocation Portfolio investment, subject to limitations based on the risk tolerance you indicated to us. You may only allocate assets to the ETFs that IA has selected for inclusion in the Asset Allocation Portfolio program. More information can be found in the white paper on Asset Allocation.
If you customize your Asset Allocation Portfolio investment, you may alter the investment characteristics of the portfolio, including the expected return, risk, diversification and tax efficiency of the portfolio. The allocation you select is your ultimate responsibility and the performance of your customized Asset Allocation Portfolio investment may be worse or better than the performance of our recommended standard Asset Allocation Portfolio. For more details and disclosures see the related documents on our Forms and Agreements page.
A strategy of diversification means you are choosing to be better prepared for risks and uncertain market conditions by not putting all your eggs in one basket. Before any cracks start to show up.
PHOTO CREDIT: https://www.shutterstock.com/g/vell
VIA SHUTTERSTOCK
DISCLOSURES:
Nothing on this page should be construed as a solicitation or offer or recommendation to buy or sell any security or as an attempt to provide any investment advice. Investment advice is only provided to investors who become clients pursuant to an investment management agreement. Covestor Ltd is an investment advisor registered with the Securities and Exchange Commission, doing business as Interactive Advisors (“Interactive Advisors”).
Diversification of assets (which Interactive Advisors uses to reduce the risk of investment in this portfolio) does not ensure a profit or protect against investment loss. All investments, including those in this portfolio, involve the risk of loss, including possible loss of the money invested and a reduction in earnings. Market fluctuations and other factors may cause decreases in the value of client accounts invested in this portfolio. Interactive Advisors does not guarantee that any particular Asset Allocation portfolio will meet a given client’s investment objective or provide a client with a specified level of income. Past performance is no guarantee of future returns. This portfolio mainly invests in ETFs and stocks and may not be suitable for all investors. Clients may lose all or part of their investments in this portfolio.
Detailed information on the asset class risks, conflicts of interest, applicable brokerage commissions, fractional shares, and limitations on investments and divestments associated with this portfolio (along with Interactive Advisors full disclosures) is provided on the Forms and Agreements page. Additional information on the performance, composition and construction process for this portfolio may be found on the Asset Allocation portfolio page.
Interactive Advisor is a registered investment adviser with the U.S. SEC. Registration does not imply a level of skill or training. Past performance is no guarantee of future results, nor is it indicative of future performance. All investments in financial markets involve risk, including the risk of loss, such as a loss of principal and reduction in earnings.
The content of this page is offered for informational purposes only, does not constitute investment advice, and is not an offer to buy or sell any security or invest in any of our portfolios.
For more detailed disclosures, please review our Legal Disclosures webpage.
