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Portfolio Construction
Asset Allocation by Risk Band
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).
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