Model portfolio
Visit our model portfolio tool to generate your own portfolio in 20 seconds. Answer the questions as accurately as you can, and this will be reflected in the portfolio breakdown that is generated, showing the funds in three "risk buckets".
How it works – an overview
The tool gives you a quick overview of how your portfolio should look, depending on your age, the amount you have to invest, and your attitude to risk. Your portfolio needs to be built around a purpose – growth or income - and needs structure, spreading risks and taking advantage of the best possible funds.
You should always remember that you should be investing for a minimum of five years, and ideally at least ten. You should also make sure that before you invest you have no debts and a comfortable sum on deposit for emergencies and planned expenditure.
The questionnaire is a simple way to identify your attitude to risk, and depending on your answers the amount allocated to each "risk bucket" wil vary. For example, if you are cautious, more will be allocated to the lower risk bucket.
In summary, your portfolio should be spread between low, medium and high risk funds, in proportion with your age, your attitude to risk, and your objectives. A good rule of thumb is that the low risk element should be equal to your age – so if you’re 25, 25% of your investment is low-risk, but this choice does depend on your personal circumstances, and will vary according to your attitude to risk. You’ll need to actively adjust this balance of risk as you get older or as your circumstances change.
- Low risk funds provide a stable core, with returns marginally over what you’d get from a deposit account.
- Medium risk funds have the potential for returns in excess of corporate bond funds and inflation, and should give returns in high single figures.
- High risk funds have the potential for double digit gains, but are more volatile.