Asset Allocation Is Responsible for More Than 90% of Investment Return
Key Investment Principle #4
- Studies have shown that 91% of investment performance is due to asset allocation, as opposed to market timing or having the best managers for the various asset classes.
Click to view: Determinants of Portfolio Performance
Source: “Determinants of Portfolio Performance II: An Update” by Gary P. Brinson, Brian D. Singer and Gilbert L. Beebower, Financial Analysts Journal May/June 1991.