Different objectives drive different asset allocations in your portfolio
You will need a prudent approach if investing for the short or medium term e.g. House downpayment or Children Education and must protect your capital against market volatility
On the other hand, if you want to be financially independent, retire early and have a long term vision market volatility may help you achieve great returns over time. A typical model portfolio will be more aggressive towards long term returns
If you are approaching retirement and/or focused on regular cash flows and want to reduce Equity Risk you may look at Corporate Bonds (this section is currently for US Investors only – Europeans, please subscribe to newsletter be posted)
Based on Research, 2 out of 3 times investing Lump Sum immediately is better than Dollar Cost Averaging (with 2% incremental returns over a 12-month period)
Ready to invest? Have a look at the Checklist of things to consider
Below is research relevant to How to build an Investment Portfolio for beginners and more advanced investors
