Who Should Invest: A moderate portfolio is appropriate for an investor with a moderately high risk tolerance and a time horizon longer than 5 years. Moderate investors are willing to accept periods of moderate market volatility (ups and downs in account value) in exchange for the possibility of receiving returns that outpace inflation by a significant margin.
Moderate Portfolio Asset Allocation: 65% Stocks, 30% Bonds, 5% Cash/MMKT
Example Allocation by Mutual Fund Category:
40% Large-cap stock (Index)
10% Small-cap stock
15% Foreign Stock
30% Intermediate-term Bond
05% Cash/Money Market
See Also:
Aggressive Mutual Fund Portfolio Example
Conservative Mutual Fund Portfolio Example
Disclaimer:
The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
