3 Mutual Fund Portfolio Examples
3 Types of Portfolios for 3 Types of Investors
Need some mutual fund portfolio examples? Here are a few basic and simple portfolios for 3 types of investors - aggressive, moderate or conservative.
Aggressive Portfolio Example
An aggressive portfolio is appropriate for an investor with a high risk tolerance and a time horizon longer than 10 years. Aggressive investors are willing to accept periods of extreme market volatility (ups and downs in account value) in exchange for the possibility of receiving high relative returns that outpace inflation by a wide margin.
Aggressive Portfolio Asset Allocation: 85% Stocks, 15% Bonds
30% Large-cap stock (Index)
15% Mid-cap stock
15% Small-cap stock
25% Foreign or Emerging Stock
15% Intermediate-term Bond
Moderate Portfolio Example
A moderate portfolio is appropriate for an investor with a moderately high risk tolerance and a time horizon longer than 5 years. Moderate investors are willing to accept periods of moderate market volatility in exchange for the possibility of receiving returns that outpace inflation by a significant margin.
Moderate Portfolio Asset Allocation: 65% Stocks, 30% Bonds, 5% Cash/MMKT
40% Large-cap stock (Index)
10% Small-cap stock
15% Foreign Stock
30% Intermediate-term Bond
05% Cash/Money Market
Conservative Portfolio Example
A conservative portfolio is appropriate for an investor with a low risk tolerance and a time horizon from immediate to longer than 3 years. Conservative investors are not willing to accept periods of extreme market volatility and are seeking returns that match or slightly outpace inflation.
Conservative Portfolio Asset Allocation: 25% Stocks, 45% Bonds, 30% Cash/MMKT
15% Large-cap stock (Index)
05% Small-cap stock
05% Foreign Stock
45% Intermediate-term Bond
30% Cash/Money Market
See Also: Mutual Fund Categories
Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice.
Under no circumstances does this information represent a recommendation to buy or sell securities.