Investing term

What is Asset mix?

The split of the portfolio across asset classes — stocks, bonds, real estate, commodities, cash.

Asset mix is simply the current breakdown of your portfolio across asset classes — stocks, bonds, real estate, commodities, cash. It's the practical snapshot you compare against your target allocation to decide whether you've drifted and need to rebalance. "Mix" describes where you are now; "allocation target" is where you meant to be.

For example

You check your asset mix and find it's 72% stocks against a 65% target — a 7-point drift telling you it's time to trim and rebalance.

Asset mix is taught hands-on in Stage 17 — Portfolio-Level Risk.

See the lesson →

Related terms

60/40 portfolioThe classic balanced portfolio: 60% global equities, 40% investment-grade bonds.Correlation trapThe phenomenon where assets that look uncorrelated in calm markets all crash together in a crisis.Headline noiseThe constant churn of financial news that moves prices intraday but is irrelevant to a multi-decade investor.HedgeAn asset held specifically because it tends to rise (or at least not fall) when something else in the portfolio falls.
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