Building a diversified portfolio is a snap with a world allocation fund. These funds, including T. Rowe Price Global Allocation (RPGAX), invest in a mix of stocks and bonds across the globe. "We view the fund as a core holding," says Charles Shriver, one of the fund's two managers. "It's a one-stop shop." Shriver and his co-manager, Toby Thompson, make the big-picture calls of how to position the portfolio. They start with a target of 60% U.S. and foreign stocks, 29% U.S. and foreign bonds, and 11% alternative investments, then tilt the fund toward certain asset classes – large- versus small-company stocks, say, or growth versus value, or emerging-markets versus developed-world stocks or bonds – depending on their view of the world.