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Asset Allocation and Bonds

sva19 · 2009-11-26 11:02:31

For one of my portfolios (Daughter 11 yr has 15 yrs to invest), I have decided on a assett Allocation as Stock 90%, Bond 8%, Cash 2% The question I have I a Children Mutual Yougster Bond alread running which accounts for 8% of the investment portfolio already and wanted to know as this is a BOND, would that be suffice for…

Comments

jamesd Posts: 26,103 Forumite

2 December 2009 at 12:28AM

It depends on their target risk level. Anything from 5% to 70%. 10-20% is quite reasonable. You can also vary it yourself based on the economic climate and how the markets are doing. If there has been a long bull market you might want to take the view that you should be increasing by 1% a month for a while in preparation for a possible fall.

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