Tactical asset allocation does not involve the shifting of funds into or out of an asset class based upon mispricing in that market.

Question

Quizplus · Accepted Answer

One approach to asset allocation is tactical asset allocation.This involves active management between asset classes.If a fund investor believes there is temporary mispricing in a particular market,they will shift funds into or out of that asset class.Consequently,tactical asset allocation involves the continual monitoring of markets and conditions,looking for the best investment conditions.

Tactical Asset Allocation Does Not Involve the Shifting of Funds