Portfolio Construction

Model Portfolio Allocations

The following are the asset allocations (X% in bonds, Y% in shares etc.) that I use for my long-term investments. I take lots of risk-rated funds and emulate them but with much lower costs.

For example, I have collected the asset allocations of 35 lower-risk rated funds and roughly copied the average allocations that those 35 similar funds have made.

The more money I have to invest, the more detailed the breakdown of asset allocations: Tier 1 (£1,000 to £5,000 to invest) only has cash, global bonds and global shares as its allocations. The reason for this is trading costs. Every time I buy or sell something, I pay a fee. For a small investment, those fees can quickly add up to a significant percentage of the overall investment portfolio (total amount of money invested).

For a bigger investment portfolio, the trading fees are less important, so I can afford to be more detailed in how I emulate the average allocations. For more information on this, see my book.

Each risk band’s figures are a weighted average across every fund in that band, weighted by data quality. The four tiers show the same numbers at progressively finer levels of category detail.

Data collated on 22 June 2026 using the latest available factsheets from 100 funds (35 Lower risk · 27 Medium Risk · 38 Higher Risk).

Tier 1 · £1k–£5k · 3 Allocations

Lower Risk

	Cash	2.63%
	Bonds	59.18%
	Equities	38.18%

Medium Risk

	Cash	1.46%
	Bonds	37.89%
	Equities	60.66%

Higher Risk

	Cash	1.68%
	Bonds	11.34%
	Equities	86.98%

Tier 2 · £5k–£15k · 5 Allocations

Lower Risk

	Cash	2.63%
	Sovereign bonds	38.56%
	Corporate bonds	20.62%
	Equities	29.33%
	Alternatives	8.85%

Medium Risk

	Cash	1.46%
	Sovereign bonds	20.08%
	Corporate bonds	17.81%
	Equities	54.67%
	Alternatives	5.98%

Higher Risk

	Cash	1.68%
	Sovereign bonds	5.76%
	Corporate bonds	5.58%
	Equities	79.90%
	Alternatives	7.08%

Tier 3 · £15k–£50k · 6 Allocations

Lower Risk

	Cash	2.63%
	Short-term bonds	9.20%
	Gov’t bonds	29.37%
	Corp’ bonds	20.62%
	Equities	29.33%
	Alternatives	8.85%

Medium Risk

	Cash	1.46%
	Short-term bonds	1.59%
	Gov’t bonds	18.49%
	Corp’ bonds	17.81%
	Equities	54.67%
	Alternatives	5.98%

Higher Risk

	Cash	1.68%
	Short-term bonds	0.26%
	Gov’t bonds	5.50%
	Corp’ bonds	5.58%
	Equities	79.90%
	Alternatives	7.08%

Tier 4 · £50k–£250k · 9 Allocations

Lower Risk

	Cash	2.63%
	Short-term FI	9.20%
	Sov UK	11.15%
	Sov Global	18.22%
	Corp UK	4.17%
	Corp Global	16.45%
	Shares UK	5.99%
	Shares Global	23.34%
	Alternatives	8.85%

Medium Risk

	Cash	1.46%
	Short-term FI	1.59%
	Sov UK	7.40%
	Sov Global	11.08%
	Corp UK	5.32%
	Corp Global	12.49%
	Shares UK	10.43%
	Shares Global	44.25%
	Alternatives	5.98%

Higher Risk

	Cash	1.68%
	Short-term FI	0.26%
	Sov UK	1.49%
	Sov Global	4.01%
	Corp UK	1.11%
	Corp Global	4.47%
	Shares UK	15.45%
	Shares Global	64.45%
	Alternatives	7.08%

This is for illustrative purposes only and does not constitute financial advice. Allocations shown are blended averages across a fund range as at the date of calculation and will change over time. Past performance and current composition are not a guide to future returns.