The idea is if
you mix enough asset classes together that are all doing different things, and as we say in the business, uncorrelated, you get a better result, more diversification and a way to grow your money in a safer way.
Not exact matches
Not
enough time, knowledge, or interest to build and manage an
asset mix?
«That
asset mix should allow for
enough growth to fund much of her children's post-secondary education,» says Schlenker.
As a rule of thumb, I tend to hold
enough of the portfolio in bond ETFs to be able to rebalance back to my target
asset mix even if there's a 50 % stock market meltdown.
What you're supposed to do is determine a
mix of viable
asset classes that fits an individual investor's life, and then either fund it with something very diversified like mutual funds, ETFs, or index funds (the CFA program likes index funds, as most advisers can't even pick open - ended mutual funds, or ETFs, well
enough to beat an index fund).
«Of the three, of course, the first is the most important, as no account or
asset mix can make up for not saving
enough.»
If one is moderate, then a smartly - balanced
mix of all 22
asset classes should be utilized (if the account has
enough money to buy them all, of course.