To understand Strategic Asset Allocation, let us know what is Asset Allocation, first. In simple words, it is a process of distributing the investor’s savings among the various asset classes.

So, by definition Asset Allocation is allocating funds to different asset classes based on the risk appetite of an investor.

Now, Strategic Asset Allocation is one of the important concepts in portfolio management theory.

The two main principles are :

• Diversification of portfolio
• Reduced Risk with good returns

Let's discuss in-depth Strategic Asset Allocation. To read, the go-to link : https://www.elearnmarkets.com/blog/strategic-asset-allocation/