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Financial Glossary

Investment Horizon

The expected time period an investor plans to hold an investment before liquidating, which influences asset allocation and risk tolerance decisions.

Capital Preservation

An investment strategy focused on protecting principal value and preventing loss, typically through conservative asset allocation and risk management.

Portfolio Rebalancing

The process of realigning portfolio weightings to maintain target asset allocation by periodically buying or selling assets.

Risk Management

The identification, assessment, and prioritization of investment risks followed by coordinated application of resources to minimize, monitor, and control impact.