facebookAs someone who is new and planning to invest, what will be the allocation like for $10,000? - Seedly

Anonymous

18 Apr 2019

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General Investing

As someone who is new and planning to invest, what will be the allocation like for $10,000?

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That allocation will depend on your risk appetite and here are some general guidelines on allocations based on certain risk appetites.

1) Aggressive

Appropriate for an investor with a high risk tolerance and a time horizon longer than 10 years.

Typically 80% invested in stocks, 20% invested in bonds/fixed-income instruments

2) Balanced

Appropriate for an investor with a medium risk tolerance and a time horizon longer than five years

Typically 60% invested in stocks, 40% invested in bonds/fixed-income instruments

3) Conservative

Appropriate for an investor with a low risk tolerance and a time horizon from immediate to longer than 3 years

Typically 40% invested in stocks, 60% invested in bonds/fixed-income instruments

Do note that the weightages above are rough estimates and the definitions of "agressive", "moderate" and "conservative" differ from institutions to institutions!

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