Asset allocation is also called Investment allocation.... if you have $100,000 to invest.... you don't want to "put all your eggs in one basket", so you are going to spread the money around into different investments. Some advisors use only mutual funds. In which case they may select 5 or 10 or 15 mutual funds and then spread your money between them... HOWEVER, they won't spread it equally.... because a conservative portfolio will have more money in bonds than an "aggressive" portfolio. An "aggressive" portfolio will probably have more money in international funds and technology funds. These are simple examples but the Retirement planner does NOT do any asset allocation in the sense that it tells you where to put your money into which investments and in what percentages. IF YOU ALREADY HAVE A PORTFOLIO of funds, it will calculate the blended portfolio return under the Investments screen if you take the time to fill that out.
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