Our asset allocation portfolios utilize liquid, readily-traded assets such as stocks, mutual funds and exchange-traded funds (ETFs) with low expenses, no loads, and no transaction fees when possible to create a portfolio based on your goals, time horizon and tolerance for volatility. We include funds that are open to new monies and which have a consistent manager tenure and a proven track record. We balance actively-managed mutual funds with index-based mutual funds and ETFs where appropriate to reduce expenses. Since asset classes, regions, styles and capitalizations respond differently to changing economic trends and to one other, they are combined into a diversified portfolio to balance their respective weaknesses and strengths. Keep in mind that there are no "risk-free" investments. When you assume risk, you also create more opportunity for reward. This principle of investing is known as the risk/reward tradeoff.