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The Asset Allocation Predicament: Part 2

Posted: May 19th, 2014 | Author: | Filed under: Uncategorized | No Comments »

So now that we have established what a tried and true portfolio looks like, we are left with the problem of what to do about the bond allocation of such a portfolio. While there are many similar variations of different reasonable portfolios out there, they all include bond allocations. What is the observant Muslim investor to do?

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The Asset Allocation Predicament: Part 1

Posted: May 11th, 2014 | Author: | Filed under: Uncategorized | No Comments »

The most important part of a portfolio is asset allocation. This refers to an investment strategy that aims to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according one’s risk tolerance and time horizon, among other factors. The three main asset classes are equities (such as stocks), fixed income (such as bonds), and cash. Each of these has different levels of risk and return and are expected to behave differently over time. How one determines to allocate his or her assets is always very personal as it will depend largely on your individual time horizon and your ability to tolerate risk.

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