Modern Portfolio Theory suggests that by blending different types of investments, an efficient protfoilio can both either reduce the risk and volatility (how much an investment goes up and down in value) and/or maximize the return for a given amount of risk. 

Research in Behavioral Finance indicates that investors tend to resist rebalancing investments to follow the buy-low and sell high strategies but instead allow for subjective emotions to interfere and to try to catch a wave and often end up accomplishing the reverse results of what was intended.

Strategic Asset Allocation solutions have been designed to expose an investor to an appropriate amount of risk within their risk profile and to rebalance the portfolio within an established criterea range to help maintain the portfolio.

Selecting the appropriate portfolio should be dependant on:

• understanding your risk profile (range of change in portfolio values)
• understanding your time horizon (how long the funds will be invested)
• understanding your income requirements (what percentage of the assets you require as income)
• understanding your income needs and designing a tax efficient portfolio (ensuring the income is as tax efficient as possible)
• determining if the fees should be charged separate from the program or bundled within the return and value.