Investment Asset Allocations

If you’ve been following us along our journey then you’ve seen our recent articles about Investor Types. If not, get on board! We’ve had a week off on this topic, but we are back with Asset Allocations for your investor type! There’s more to investing than just picking any ol’ stock that sounds cool. I mean, you can always do that if you’re keen on a lucky number or letter, but I wouldn’t highly recommend it. Again, this is just general information for you to get your mind thinking and a bit more educated on options for investments that align with your investor type. (Take a look at our previous articles and take our investor quiz to learn which investor type you are.)

Just a quick reminder if you’re reading this and thinking, “why should I trust AJ on investment choices?” Between AJ there’s a Master of Financial Management and a Master of Finance with RG146. The RG146 is a financial regulatory guide created by ASIC (Australian Securities & Investments Commission) for anyone providing financial advice.

Straight and simple. These are generic asset allocations for the 5 investor types that AJ has outlined in previous weeks. By generic, I mean the categories of investments and not the specific stock. Later on AJ will break down what to look for in stock pickings and how to weigh out the good from the bad. Diversification is key, and these asset allocations offer that!

Low Risk Tolerance
100% of the investable money into deposit-taking institutions, for short-term investments.

Below Average Risk Tolerance
15% Australian Equities
11% Global Equities
10% Property & Infrastructure
4% Growth Alternatives
50% Fixed Interest
10% Cash

Average/Moderate Risk Tolerance
23% Australian Equities
20% Global Equities
10% Property & Infrastructure
7% Growth Alternatives
35% Fixed Interest
5% Cash

Above Average Risk Tolerance (Growth)
32% Australian Equities
26% Global Equities
10% Property & Infrastructure
13% Growth Alternatives
16% Fixed Interest
3% Cash

High Risk Tolerance (High Growth)
40% Australian Equities
34% Global Equities
10% Property & Infrastructure
16% Growth Alternatives
0% Fixed Interest
0% Cash

These are perfect starting asset allocations depending on your investor type. Keep your eyes peeled for more articles expanding on what type of stocks to pick from and how to weigh out the good from the bad!

Until next week,

Xoxo AJ

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