Dynamic Asset Allocation is an investment strategy that involves adjusting the mix of different asset classes, such as stocks, bonds, and cash, based on changing market conditions. This approach allows investors to respond to economic trends, market volatility, and other factors that can impact the performance of their portfolio. By actively managing the allocation of assets, investors aim to optimize returns while managing risk. Unlike static asset allocation, which maintains a fixed percentage in each asset class, dynamic asset allocation seeks to capitalize on opportunities and mitigate losses by reallocating investments as needed.