What a balanced portfolio really means

Financial Planning Meeting

What a balanced portfolio really means


While the concept of achieving a balance between work and leisure has been traced back as far as the early 1800s, it wasn’t until the 1990s that the phrase “work-life balance” found its way into common parlance. Today, it’s what everyone seems to want.

The same concept of balance can be applied to investing. But instead of a choice between work and leisure, investment balance is based on a mix of risk and return.

A balanced portfolio requires weighing an investor’s objectives, time horizon, risk tolerance and investment knowledge. Once these factors are well understood, an advisor should consider the following variables: asset mix, asset allocation style, investment management style, geographic bias, market capitalization and re balancing parameters.

To read more details about each of the important variables to a balanced portfolio in this article by Advisor to Client, CLICK HERE. If you have any questions please contact Harry or David.