Choosing the right asset mix

At a glance

  • Your financial investment aim, time body for needing the cash, and chance tolerance must figure out your concentrate on asset combine.
  • Every single asset class—stocks, bonds, and cash—plays a unique purpose in a balanced portfolio.
  • At the time you know your concentrate on asset combine, you can choose particular person investments to hold in your portfolio.

A person of Vanguard’s critical financial investment principles is to build clear, ideal financial investment targets. For instance, your aim could be to save for retirement. That aim, together with your time body and chance tolerance, decides your concentrate on asset allocation—the ideal combine of shares, bonds, and income you must hold in your portfolio.

Your concentrate on asset combine is like a bull’s-eye: Zero in on it, stay targeted, and tune out the interruptions so you can access your aim.

Here’s some facts to assist you choose your concentrate on

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