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Master portfolio – for conservative investors
This section examines master investment portfolios for investors needing a conservative portfolio.
Conservative portfolios are best suited to investments with a fairly short term outlook – only a few years, say – where any drop in value probably won’t have time to recover. Portfolios here won’t typically generate the type of growth that more equity-focused portfolios would, but are structurally less likely to lose value in a market slump; there is a risk, if used for long term investing, of failing to keep pace with rising prices (inflation).
The two questions you next need to decide are:
- Equities in which countries? The global stock market as a whole? Or a bias towards, perhaps, the UK and the US?
- Do you want to focus on ethical/sustainable investments?