A balanced investment strategy typically allocates 60% of a portfolio to equities and 40% to fixed-income securities. This approach aims to capture potential growth from stocks while mitigating risk through the stability of bonds. One of the world’s largest asset managers offers funds designed to implement this strategy for investors.
This balanced approach offers a potential middle ground between higher-risk, higher-return equity investments and lower-risk, lower-return fixed-income investments. Historically, a 60/40 portfolio has provided relatively stable returns over the long term, making it a popular choice for investors seeking a balance between growth and preservation of capital. The specific mix of assets within each category (e.g., large-cap vs. small-cap stocks, government vs. corporate bonds) can be adjusted to align with prevailing market conditions or specific investor risk tolerances.