What does the ideal portfolio look like? | Print |  E-mail

The check marks in the style boxes below indicate the asset classes that work best together in a portfolio optimized to capture the highest returns with the least volatility and risk. Your plan may offer other kinds of funds, but you only need the asset classes shown below to get the best results with the highest efficiency.

The Best Combination of Asset Classes:

A slight bias towards value tends to increase returns and reduce volatility.
 
As you can see, the ideal combination of asset classes includes:
  • U.S. Large Blend (Growth with a bias toward value).
  • U.S. Large Value
  • U.S. Small Blend
  • U.S. Small Value
  • International Large Blend
  • International Large Value
  • International Small Blend
  • International Small Value
  • Emerging Markets (not shown in style box).
  • Bond fund choices (not shown in style box), preferably short-term bonds, medium-term bonds and a stable value fund.

 

DISCLAIMER:
This information is provided by Merriman Berkman Next, Inc., a registered investment advisor, and is believed to be from reliable sources, but no guarantee is made as to accuracy or completeness. The investment securities and strategies discussed are not suitable for all investors. Recommendations are of a general nature, not based on knowledge of any individual's specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services. Unless otherwise noted, all reported or projected results (1) assume reinvestment of interest and dividends; (2) are net of any applicable management fees and transaction costs; and (3) do not reflect any effect of taxes. Past returns, whether actual or hypothetical, are not indicative of future results, which will be different from those of the past.