Martin Lee @ Sg
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Asset Allocation Game Challenge

Asset allocation is the process of selecting between different asset classes such as equities, bonds, cash and real assets.

Too often, investors ignore the asset allocation process. Instead, they focus on trying to select the “best” investment of their preferred asset class.

As different assets will perform differently at different periods of time, the asset allocation process can be a crucial element in determining the final investment return of your investments.

You can find out more about asset allocation as well as play an asset allocation game at this website developed by Aberdeen. A lucky winner will get to win an iPad.

==> Asset Allocation Game Challenge

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2 comments
Garrett says 13 years ago

I’ve tried the Aberdeen Asset allocation game and provides really poor and misleading financial education. The questions are in the format (i) here’s the economic situation now & (ii) what asset allocation would you use. Personally, I do not see why the economic situation should be the main factor used for asset allocation. Shouldn’t it be one’s investment horizon, risk appetite and age?

Reply
    lioninvestor says 13 years ago

    Hi Garrett,

    I think the point of the game is more to tell you that different assets perform differently in different scenarios and that one should have a diversified portfolio. It’s more for the fun of it as it’s really difficult to market time economic situation, though in reality one may still choose to underweight/overweight certain assets based on economic situation.

    You can try out the game with 100% equities compared to a diversified holding and see how it pans out.

    The articles on the site does explain the asset allocation principle a bit.

    Reply
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