There's more sense to the saying "don't put all your eggs in one basket" than common sense-especially with respect to portfolio management. Even newcomers to the investment game know the ground rules from real-life experiences, which have invariably proven the magic of diversification. Diversification is the basic principle of asset allocation-a concept of determining and maintaining an investment plan in terms of a chosen mix of investments in different assets.

            Asset allocation is vital because it has major impact on whether you meet your financial goals within your time horizon and risk tolerance. Since asset allocation is the process of dividing a portfolio among major asset categories-say, bonds and stocks, cash and cash equivalents, real estate, foreign currency, or luxury collectibles-it allows you to spread your money across several class assets, which over the long term could reduce risk and potentially enhance return.

            Some financial experts believe that determining your asset allocation is the most important decision that you'll make when it comes to your investments-even more important than the individual investments you buy. Research shows over the long haul, asset allocation is more important than the individual investments to the overall performance of the investment portfolio.

            Busy investors, however, can hardly be bothered to personally pick out "rising stars" from an array of investment options, much less put together an ideal asset allocation model on their own. Determining the appropriate asset allocation model for a particular financial goal is a complicated task, one best left to experts who recognize the highly individual character of wealth management's asset-allocation aspect.

            BDO Private Bank's Wealth Advisory & Trust Group provides this expertise through highly trained and accredited Registered Financial Consultants (RFCs) who help design the client's investment strategy and help the client navigate his or her way through investment complexities and rapidly changing financial markets. Inherent in asset allocation is the idea that the best-performing assets vary from year to year and therefore not easily predictable. Hence the need for expert guidance and advice, with a view to help preserve capital, increase liquidity, and decrease volatility.

            BDO Private Bank assures clients of a customized portfolio that reflects their personal objectives, resources, and appetite for and ability to shoulder risk. These portfolios are constantly reviewed and revised accordingly, depending on the client's circumstances and the external economic conditions. This is the closest investors will ever get to personalized private banking in the service of wealth management.

To know more about BDO Private Bank's wealth management solutions, interested parties may call the bank's Wealth Advisory & Trust Group at telephone numbers 848-6301, 848-6302, 848-6304, and 848-6267, or email wealthadvisors@pb.bdo.com.ph.