The Next 5 April Fool's Portfolio Buys

So far, we've shared half of the picks in our special real money portfolio with our Fools around the world, and we want to continue the fun! (See our previous picks here and here.) Today we're here to bring you the next round of high-conviction stock and fund picks that we believe are well positioned to make money over the next five years.

But first, we wanted to take a minute to share our thoughts with you on one of the most important tools any investor can utilize when building a portfolio -- asset allocation.

As a more technical definition, asset allocation is a strategy where investors divide their portfolio among various asset classes, depending on their risk tolerance, goals, and investing time horizon. Basically, asset allocation is a tool for balancing the potential risks and rewards in a portfolio by investing in different areas of the market.

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Source Fool.com