How to read this
Asset allocation — how much you hold in equity versus debt — explains far more of a portfolio's behaviour over time than the individual schemes chosen within each bucket.
The split shown here is a conventional rule of thumb adjusted for your age, your horizon and your own answer on volatility. It is a starting point for a conversation, not a recommendation. A real allocation has to account for your income stability, your existing assets, your liabilities and your goals.
The three inputs that matter
- Horizon — money needed within three years does not belong in equity, whatever your age or appetite.
- Capacity — how much loss you could absorb without changing your plans.
- Temperament — how much loss you could sit through without selling. The second is the one that usually binds.
Rebalancing
Whatever split you choose will drift as markets move. Reviewing it once a year and restoring the intended proportions is what keeps the risk of the portfolio close to the risk you actually agreed to take.