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Strategic Asset Allocation

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Definition of 'Strategic Asset Allocation'

A portfolio strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation.
Investopedia Says

Investopedia explains 'Strategic Asset Allocation'

At the inception of the portfolio, a "base policy mix" is established based on expected returns. Because the value of assets can change given market conditions, the portfolio constantly needs to be re-adjusted to meet the policy.

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