Whats the best portfolio composition
3/11/2024 08:28am
The best portfolio composition depends on several factors, including your investment goals, risk tolerance, and time horizon. However, a general guideline for a balanced portfolio composition is to allocate your investments across different asset classes, such as stocks, bonds, and cash or money market securities. Within these asset classes, you can further diversify your portfolio by investing in different sectors or geographies.For example, a conservative allocation might consist of 15% large-cap stocks, 5% international stocks, 50% bonds, and 30% cash investments. Alternatively, a moderately conservative allocation might include 20% large-cap stocks, 10% international stocks, 40% bonds, and 20% cash investments.It's important to note that the specific asset allocation percentages may vary based on your individual circumstances and preferences. It's always a good idea to consult with a financial advisor to determine the best portfolio composition for your needs.