Asset allocation model for conservative investors

October 22 , 2020 |4 Comments

Asset Allocation Model For Conservative Investors

A conservative investor is one whose risk tolerance is low. He is someone who would prefer a low risk-low return scenario. This can also be the case with someone who is moving towards the end of the investment horizon. Such an investor may otherwise be risk tolerant, but his portfolio needs to be rebalanced by lowering the risk as he may be nearing the end of his investment Though there is no thumb rule for the same, a portfolio with over 60% of assets invested in fixed income securities can be considered to be conservative. The equity allocation would generally be 30% or lower.

Asset Allocation Model For Aggressive Investors

An aggressive investor has an affinity towards risk and is willing to accept the higher risk to create opportunities for increased returns. Though age is not a barometer for assessing risk, typically this investor is young, in an early lifecycle stage, or has a long investment horizon. A portfolio with over 60% of assets invested in equities can be considered to be aggressive. Very aggressive asset allocation models can even invest over 90% of the assets in equities.

Asset Allocation Model For Moderate Investors

A moderate investor is one who can accept the risk but is averse to too much of it. Further, his return expectations are moderate. This type of portfolio is also suitable for an investor who is in the middle of his investment horizon or life cycle, and though there is still time to go, he may need some money intermittently. A portfolio in which equities comprise 40-50% of the total assets can be considered to be moderate. Even among

the equity exposure, a higher percentage may be towards blue chip or dividend-paying stocks instead of more adventurous ones.

The Gone Fishin Portfolio And Investment U S Asset Allocation Model

I would be remiss if I didn’t circle back to our own Investment U recommended It’s based on Dr. Harold Markowitz’s Nobel Prize-winning formula introduced in 1990 that shows how to maximize gains and minimize risk through asset allocating and rebalancing each year. It’s also the same asset allocation model used by our Chief Investment Strategist Alexander Green in his bestselling book, The Gone Fishin’ Portfolio. Our suggested approach is more of a hands-off, one-size-fits-all model as shown above. But for those who want

a little more control and have more knowledge about the various instruments involved, they may want to look into something like Ferri’s flight-based model. The Gone Fishin’ Portfolio wasn’t modeled to time the market or one’s retirement path, but rather to try to give a little piece of mind and provide steady gains no matter how turbulent the financial landscape. https://money.cnn.com/retirement/guide/investing_basics.moneymag/index7.htm To find the right asset allocation for you, go to our asset allocation calculator ============================================================================= . did not work for me. I

think that if you have enough in cash, CD's, etc. to live on for two years you should be 90% in stock reguardless of your age. A Gift of Relief for House Fire Shock. Raised $1,800 from 14 donations Merrimac GO FUND ME FOR ART AND BRI GO FUND ME FOR ART AND BRI - Hosted By Swedish Homestead - YouTube Colorist Peter Pantazis Launches Go Fund Me to Save His House

Share this post:

BlogNiche.com

Professional niche blogs with track record over 1M+ blog posts, Still counting.

Connect: View All Posts

Fundchase.com

This Blog is For Sale

Asset allocation model for conservative investors