What is the ideal portfolio mix?

What is the ideal portfolio mix?

What is the ideal portfolio mix?

When it comes to investing, and / or personal financial planning, there is no such thing as a one-size-fits-all! 

Depending on one's age, needs, goals, priorities, risk tolerance, objectives, etc., on a case-by-case basis, the most appropriate strategy can be determined! 

Your overall wealth, liquid assets, income (from various sources), job security, reserves, and personal, comfort zone / level are important factors to determine, in terms of personalization, the best route for you. 

Investment list. With this in mind, this article will attempt to summarize, consider, examine, review, and discuss what might make the most sense for your specific combination and set of conditions and factors.

What is a good portfolio?

What is the ideal portfolio mix?

Risk Tolerance

One of the first things to consider is your personal, risk tolerance. This means, in simple terms, how you can balance at night, to sleep, to invest and to be able! 

Many people confuse words, especially, when it comes to mixing up, difference, growth and income. 

How many times have you heard someone declare, development - investment, they held, didn't offer enough income, and / or, income-focused investments don't provide growth / rising prices, etc.? 

One must consider, how much risk, they are ready, willing, and / or, able, to bear, and accept!

How aggressive should my portfolio be?

Aim / Intention

When considering your portfolio mix, clearly, identify your personal goals and objectives. 

Some goals include: saving for the child's education; Creating a source to buy a future home; Develop a retirement fund; Etc. 

It makes sense, usually, to choose the right mix of investments, carefully, for each purpose. 

Achieving goals is, generally, easier / simpler, when done, for a longer period of time, so one can take advantage of the concept of dollar cost averaging. 

This approach, often, reduces overall - market risk, because, when a purchase is made, at a specific point, every month, market fluctuations go away - less, relevant and important!


We are individuals, and have our own requirements! Avoid, trying, keep up with Jones, because, what they can mean to you, not to you, and what you need! 

Do you need growth, current income, future income, or some combination, etc.?

Small Vs Large - Cap Equity

We often hear the words small, cap, versus, large - cap. It refers to the amount of capitalization of an individual company, investment or mutual fund. 

The value and monetary stability of any company, and can be a factor in strength, security etc.

What is the ideal portfolio mix?

Bonds and Preference Stocks

Corporate bonds are loans that companies use to raise money / capital.  

Some are unsecured, but, generally, we consider bonds (debentures) backed by that company's finances. 

Therefore, while, many considerations, bonds, secured, it depends, the quality of the specific company. 

Preferred stocks are, generally, preferred forms of equity, and pay a regular dividend. Most people, who invest in both these types of investments, constantly seek income. 

At this point - due to record time - lower, interest rates, current bond prices are higher, because they were issued when rates were higher, and the bond price was adjusted, because, it determines the total value. 

The more you know, and understand, the better, you will determine the portfolio mix, which can best serve your individual needs, goals and priorities. Become a smart investor!


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