Here are some common asset allocation strategies:

1. Strategic Asset Allocation:
   • Definition: This is a long-term, passive approach where you set a target allocation for various asset classes based on your risk tolerance and investment goals.
   • Example: A typical strategic allocation might be 60% in stocks and 40% in bonds, and you periodically rebalance to maintain this allocation.
2. Tactical Asset Allocation:
   • Definition: Tactical asset allocation involves deviating from your long-term strategic allocation based on short-term market conditions or opportunities.
   • Example: You might increase your allocation to stocks if you believe they are undervalued, or decrease it if you expect a market downturn.
3. Dynamic Asset Allocation:
   • Definition: This approach allows for more frequent and significant changes in asset allocation based on a predefined set of rules or algorithms.
   • Example: A dynamic allocation strategy might involve shifting between asset classes based on signals from technical indicators or economic data.
4. Asset Allocation by Age:
   • Definition: A rule-of-thumb approach where your asset allocation becomes more conservative as you get older to reduce risk as you approach retirement.
   • Example: A young investor might have a higher allocation to stocks (e.g., 80%) while an older investor might have a higher allocation to bonds (e.g., 60%).
5. Risk-Based Asset Allocation:
   • Definition: Your asset allocation is determined by your risk tolerance. If you are risk-averse, you might have a higher allocation to bonds; if you are risk-tolerant, you might have a higher allocation to stocks.
   • Example: An investor with a low risk tolerance might have a portfolio with 70% bonds and 30% stocks.
6. Factor-Based Asset Allocation:
   • Definition: This strategy allocates assets based on specific factors or characteristics believed to drive returns, such as value, growth, momentum, or low volatility.
   • Example: A factor-based allocation might overweight value stocks and underweight growth stocks if you believe value stocks will outperform.
7. Income vs. Growth Asset Allocation:
   • Definition: This approach focuses on balancing investments that provide income (e.g., bonds, dividend-paying stocks) with those that offer growth potential (e.g., growth stocks).
   • Example: An investor seeking income might allocate 70% to income-producing assets and 30% to growth assets.
8. Geographic Asset Allocation:
   • Definition: Allocating assets among different regions or countries based on economic conditions, geopolitical factors, or growth prospects.
   • Example: If you believe emerging markets will outperform, you might increase your allocation to those regions.
9. Alternative Asset Allocation:
   • Definition: Includes assets beyond traditional stocks and bonds, such as real estate, commodities, hedge funds, and private equity.
   • Example: Allocating a portion of your portfolio to real estate investment trusts (REITs) for diversification.

Remember that there is no one-size-fits-all asset allocation strategy. Your individual circumstances and goals will determine which strategy is most suitable for you. It’s also important to periodically review and adjust your asset allocation as your financial situation and market conditions change. Consulting with a financial advisor can be helpful in designing an appropriate asset allocation strategy.