The glossary

Tactical asset allocation

A next step after you completed your risk profile, is usually to determine a mix of assets that you should hold for the long term – often referred to as strategic asset allocation. While the strategic asset allocation is designed to help you reach your objectives over the long term, the composition of your mix could change slightly over the short term as market conditions change. For example you may want to add temporarily more capital to a particular asset class versus another if you feel that it could deliver more performance in the short term. The set of these tactical adjustements is called the tactical asset allocation.