risk_portfolio

Strategic Asset Allocation

Strategic Asset Allocation (SAA) is the long-run mix of broad asset classes used to govern a portfolio's allocation across equities, fixed income, cash equivalents, and other investments to align with goals and risk tolerance.

Example: A retirement plan uses an SAA with 60% in equities and 40% in bonds, with defined ranges around those weights; periodic rebalancing keeps the portfolio aligned with the policy.

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