investing

An asset-allocation model to follow

Investing » An Asset-Allocation Model To Follow

Don't be intimidated by investing. Anyone with money to invest can set up a portfolio using the tenets of modern portfolio theory.

Modern portfolio theory sounds like a complicated, math-intensive concept -- and it is. But the basic premise suggests that investors can construct a portfolio that maximizes returns for the level of risk they wish to take. Diversification between bonds and stocks reduces stock market risk. Spreading investments among various asset classes within those broad categories further reduces the dangers associated with concentrating on one business, industry or sector.

Keep your plan in shape with regular rebalancing and voila: You're investing like the pros.

vector man: © Dooder/Shutterstock.comInvestmentBankrate.com

advertisement

          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

How should my teen invest $150K?

Dear Dr. Don, My son will turn 18 years old in December. He has $150,000 from a settlement now sitting in the bank. What is the best plan to pursue for investing this money? Is investing in precious metals a good way to... Read more

advertisement

Blog

Sheyna Steiner

Balancing your investment portfolio

Setting goals and formulating a plan to get there helps investors stay on the straight and narrow.  ... Read more

Partner Center
advertisement

Connect with us