What are Target Allocations?

When you are creating your Portfolio Model, you need to specify how you want your investment allocated among the assets in the Portfolio Model. Target Allocations are the instructions that determine what percentage of the invested amount is allocated to each asset. The total of all allocations must equal 100%.

For example, if you have five (5) assets in your Portfolio Model and assign Target Allocations of 20% to each asset and then invest $1000.00, orders will be created to buy $200 worth of each asset. Any time you reinvest in the model, funds are allocated based on the Target Allocations.

As prices move your actual and target allocations may become out of sync. Use the Rebalance feature to realign actual and target allocations. 

Powered by IBot
What is an imbalance?
What is a Portfolio Model?
How do I invest in a Portfolio Model?
What does investing in a model involve?