A balanced portfolio invests in both stocks and bonds to reduce potential volatility. Stocks in this portfolio include a balance between those that are dividend yielding and those that look for longer term growth. An investor seeking a balanced portfolio is comfortable tolerating short-term price fluctuations, is willing to tolerate moderate growth, and has a mid- to long-range investment time horizon.
Asset allocation weights fluctuate to allow for risk minimization during times of uncertainty and gives winners a chance to capitalize in a bull market.
An allocation to cash allows for unforeseen liquidity needs.
Weightings
Equity: 60% - 65%
Fixed Income: 30% - 35%
Cash: 5%
![A graph of a balanced portfolio with equity (60-65%), fixed income (30-35%) and cash (5%).](/documents/33114419/33114481/Balanced+Portfolio+V2.png/27c1a6ca-08a4-4e10-8175-24584b988c61?t=1703695971802)