Here are a few sample asset allocations to manage different types of risk:
Conservative portfolio: This portfolio is suitable for those who have a low risk tolerance and are seeking preservation of capital. A typical allocation for this portfolio could be 60% bonds and 40% stocks.
Moderately conservative portfolio: This portfolio is suitable for those who have a moderate risk tolerance and are seeking a balance of stability and growth. A typical allocation for this portfolio could be 40% bonds, 40% stocks, and 20% alternatives such as real estate or commodities.
Balanced portfolio: This portfolio is suitable for those who have a balanced risk tolerance and are seeking moderate growth with some stability. A typical allocation for this portfolio could be 30% bonds, 50% stocks, and 20% alternatives.
Moderately aggressive portfolio: This portfolio is suitable for those who have a higher risk tolerance and are seeking higher growth potential. A typical allocation for this portfolio could be 20% bonds, 60% stocks, and 20% alternatives.
Aggressive portfolio: This portfolio is suitable for those who have a high risk tolerance and are seeking maximum growth potential. A typical allocation for this portfolio could be 10% bonds, 80% stocks, and 10% alternatives.
It's important to note that these are just sample allocations and may not be suitable for every individual. An individual's specific investment strategy will depend on their personal financial goals, risk tolerance, and investment time horizon. It is always recommended to consult with a financial advisor to determine the best asset allocation strategy for your specific circumstances.
