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Integrated asset allocation strategy is a moderately active portfolio management strategy. It is practiced mainly by mutual funds, portfolio managers and some personal investors. Integrated asset allocation strategy is somewhat complex as there are no fixed rules, and requires good knowledge, frequent investment preference changes and good analysis tools for proper implementation.

Integrated asset allocation strategy integrates aspects of all other asset allocation strategies (dynamic, tactical, strategic, constant-weighing and insured asset allocation strategies). Unlike other strategies, it gives nearly equal importance to future portfolio returns and portfolio risk tolerance. Often integrated asset allocation process starts just like tactical, strategic or dynamic asset allocation, and then the investing preferences are changed to get desired short-term or long-term portfolio return and risk tolerance.

Investors following integrated portfolio management strategy may or may not have investing preferences. Often they choose to invest a fixed portion of their capital in high-profit and/or low-risk investments and then adjusting the other portion according to market and product performances. One major mistake often made by investors following integrated asset allocation strategies is simultaneously implementing opposite (competing) strategies. This makes portfolio management more complex and difficult, and can also result in capital loss.

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