Multiple outlets explain that asset allocation refers to determining the proportion of investments across different asset classes to build a portfolio. In this approach, investors decide how much of their money to allocate to categories such as equities, debt, or other asset types based on their investment goals, time horizon, and risk preferences. Asset allocation is described as an initial step in the investment process because it shapes the overall risk-return profile of the portfolio before selecting specific investments. The outlets focus on the concept rather than specific fund products, framing “asset allocation funds” as funds designed to implement this strategy by holding a mix of asset classes according to a predetermined allocation. Overall, the sources emphasize that the allocation decision is central to portfolio planning and that asset allocation funds are intended to provide a structured way to maintain a diversified mix of assets consistent with that allocation.