Portfolio Overview
Our portfolio models are based on decades of academic research in financial science, particularly Modern Portfolio Theory developed by Nobel laureate Harry Markowitz. Each model represents an optimal balance of risk and return for different investor profiles.
How to Choose Your Portfolio
Time Horizon
Longer time horizons can typically handle more volatility for higher returns.
Risk Tolerance
Your comfort level with portfolio value fluctuations.
Financial Goals
Whether you need income, growth, or capital preservation.
Risk vs Return Relationship
Higher potential returns generally come with higher risk (volatility). Our models follow the efficient frontier principle, optimizing the risk-return tradeoff for each portfolio type. Historical data shows that well-diversified portfolios can achieve better risk-adjusted returns than individual investments.
Model Portfolios
Ultra Conservative
Capital Preservation Focus
Designed for investors prioritizing capital preservation over growth. Minimal volatility with steady, predictable returns.
Asset Allocation
Best For
Conservative
Stability with Modest Growth
Balanced approach favoring stability while allowing for modest growth. Suitable for income-focused investors.
Asset Allocation
Best For
Moderate Conservative
Income with Growth Potential
Slightly more aggressive approach while maintaining conservative foundation. Introduces alternatives for diversification.
Asset Allocation
Best For
Balanced
Equal Risk-Return Balance
Classic balanced portfolio with equal emphasis on growth and stability. The foundation of many retirement plans.
Asset Allocation
Best For
Moderate Aggressive
Growth-Focused with Diversification
Growth-oriented portfolio with meaningful exposure to equities while maintaining some defensive positions.
Asset Allocation
Best For
Aggressive
Maximum Growth Potential
High-growth portfolio emphasizing equity exposure. Designed for long-term wealth accumulation with higher volatility tolerance.
Asset Allocation
Best For
Ultra Aggressive
Maximum Long-Term Growth
Maximum equity exposure for investors with very long time horizons and high risk tolerance. Focused purely on growth.
Asset Allocation
Best For
Implementation Guide
Asset Classes Explained
Stocks (Equities)
Ownership shares in companies. Higher growth potential but more volatile. Can be domestic or international, large-cap or small-cap.
Bonds (Fixed Income)
Loans to governments or corporations. More stable than stocks, provide income. Duration and credit quality affect risk and return.
Alternatives
REITs, commodities, private equity. Provide diversification benefits and inflation protection. Lower correlation with traditional assets.
Rebalancing Strategy
Rebalancing Best Practices
- • Frequency: Quarterly or semi-annually for most investors
- • Threshold: Rebalance when allocation drifts 5% or more from target
- • Tax Efficiency: Use tax-advantaged accounts when possible
- • Dollar-Cost Averaging: Use new contributions to rebalance
Advanced Concepts
Sharpe Ratio
Measures risk-adjusted return. Higher Sharpe ratios indicate better risk-adjusted performance. Our models target Sharpe ratios between 0.5-1.4 depending on risk level.
Maximum Drawdown
The largest peak-to-trough decline. Important for understanding worst-case scenarios. Conservative portfolios typically see 5-15% drawdowns, while aggressive portfolios may see 30-50%.
Correlation Benefits
Diversification works best when asset classes have low correlation. Our models include assets that historically move independently, reducing overall portfolio risk.
Important Disclaimer
These model portfolios are for educational purposes only and do not constitute personalized investment advice. Past performance does not guarantee future results. All investments carry risk of loss. Consider consulting with a qualified financial advisor before making investment decisions.