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The Big Screen: Building a Better Portfolio

 

Everybody tells us we need a diversified portfolio, but nobody tells us what one looks like. So let's check one out.

The main idea with building a portfolio isn't to focus on what's working today, but rather to build a sensible blend of solid funds with varied styles. This gives you access to whatever style is working at any given time, smoothing your portfolio's performance as the winds inevitably shift on Wall Street. Of course, that's easier said than done, but if you're feeling the urge to broaden your portfolio, here's a quick and easy Baedeker for you.

A Fund Investor's Baedeker
U.S. Diversified Stock Funds
Large-Cap Growth 35%
Large-Cap Value 35%
Mid-Cap Growth 10%
Mid-Cap Value 10%
Small-Cap Growth 5%
Small-Cap Value 5%
Other Stock/Bond Funds
Sector Funds
Balanced Funds
Foreign Funds
Bond Funds
...

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