Groundlearn / Glossary / Asset location
Asset location
A CFA term, defined in plain English with the distinction examiners test.
What it means
Deciding which account type holds which asset, so that heavily taxed returns sit in tax-sheltered accounts.
The exam angle
Distinct from asset allocation, and one of the few reliably free sources of after-tax return.
Where it appears in the syllabus
- Private Wealth pathwayCFA Level III · exam weight 30–35% · Goals-based planning, tax efficiency, human capital, wealth transfer.
Related terms
- Goals-based investingStructuring wealth into separate portfolios for separate objectives, each with its own horizon and risk tolerance,…
- Human capitalThe present value of an individual’s expected future earnings, treated as an asset alongside their financial wealth.
- Tax-loss harvestingRealising losses deliberately to offset gains elsewhere, while keeping the portfolio’s economic exposure broadly intact.
- Wealth transferMoving assets to the next generation or to charity, structured for tax efficiency and for the family’s intentions.
Educational content only. This is not financial, investment, legal or regulatory advice. Check the official curriculum for your own exam before relying on any definition here.
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