Risk Tolerance & Asset Allocation
Matching the mix of equities, bonds, and other assets to your genuine capacity and appetite for risk, at every stage of investing life.
The 60/40 Portfolio in the 2020s: Is It Still Safe for UK Retirees?
Examines whether the classic 60/40 equity-bond portfolio still works for UK retirees given recent market and interest rate conditions.
Read guide →De-risking Your Portfolio: How to Shift from Equities to Bond Funds as You Age
Explains how and when to gradually shift a portfolio from equities toward bond funds as retirement approaches, reducing risk over time.
Read guide →Understanding Volatility: What Standard Deviation Really Tells You About a Fund
Explains how to interpret a fund's standard deviation and volatility figures when comparing the investment risk of different funds.
Read guide →Multi-Asset Funds: The One-Fund Solution for Hands-Off Investors
Explains how multi-asset and all-in-one funds work, and who they suit as a simple, single-fund solution for hands-off investors.
Read guide →How Much Risk Should You Take in Your 20s, 30s, 40s, and Beyond?
A guide to how investment risk and asset allocation might reasonably shift across your 20s, 30s, 40s, and later decades of life.
Read guide →Sequencing Risk: Why the Order of Returns Matters Most Near Retirement
Explains what sequencing risk is, and why the timing of poor investment returns matters far more near retirement than during accumulation.
Read guide →Gold, Commodities, and Alternatives: Do They Belong in a UK Portfolio?
Assesses the case for gold, commodities, and other alternative assets as diversifiers within a UK fund portfolio.
Read guide →Risk Tolerance vs Risk Capacity: Why They're Not the Same Thing
Explains the difference between how much investment risk you feel comfortable with and how much risk you can actually afford to take.
Read guide →Target Date and Lifestyle Funds: Automatic De-Risking Explained
Explains how target date and lifestyle funds automatically shift their asset allocation as a chosen retirement date approaches.
Read guide →How Bonds Actually Behave When Interest Rates Rise: A UK Investor's Guide
A UK investor's guide to how rising interest rates affect bond prices and bond funds, and why duration matters so much.
Read guide →Cash as an Asset Class: How Much Should You Hold Outside Your Portfolio?
Looks at the role of cash savings alongside an investment portfolio, and how much an emergency fund might reasonably need to cover.
Read guide →Behavioural Risk: Why Investors Sabotage Their Own Asset Allocation in a Downturn
Covers the common behavioural mistakes investors make during market downturns, and how these undermine a carefully chosen asset allocation.
Read guide →