This module provides the learner with a basic understanding of how the allocation of assets works in an investment context and explains why it is important to split up / diversify the invested assets between different asset classes to achieve a reduction in investment risk and volatility of returns.
Learning outcomes:
- What is asset allocation and what are the benefits
- How can diversification be achieved as well as how diversification may help achieve more stable returns
- What is an Investment Policy Document and how does this document guide the Fund
- What is a benchmark and how do we measure performance using benchmarks
- How do we set investment targets and what is the difference between a benchmark and a target
- What do we need to consider when evaluating asset managers
- What is passive investing and how does this differ to active management
Additional Information:
