Balanced portfolio with a cautious profile emphasizing bonds and global equities

Report created on Aug 2, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is structured with a 40% allocation in government bonds, 40% in global equities, and 20% in emerging market equities. This composition reflects a cautious approach, balancing the stability of government bonds with the growth potential of global and emerging market equities. The heavy allocation towards bonds is typical for investors prioritizing capital preservation, while the significant equity portion allows for growth, making it suitable for a moderately conservative risk profile.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 5.75%, with a maximum drawdown of -22.51%. These figures suggest a relatively stable performance, with the portfolio experiencing significant, though not extreme, fluctuations. The days contributing to 90% of the returns highlight the impact of short-term volatility on overall performance. Comparing this to a benchmark might provide further insight into its relative stability and growth potential.

Projection Info

Monte Carlo simulations, which use historical data to predict future outcomes, show a wide range of potential portfolio values. With 90% of simulations resulting in positive returns, the analysis forecasts an annualized return of 6.44%. However, it's important to remember that these projections are hypothetical and subject to the limitations of past data, which may not accurately predict future market conditions.

Asset classes Info

  • Stocks
    60%
  • Bonds
    40%

The asset class distribution, with 60% in stocks and 40% in bonds, is well-aligned with the portfolio's cautious risk profile. This balance provides a solid foundation for growth while mitigating risk through bond holdings. It's a classic approach for those seeking moderate growth with reduced volatility, compared to a more aggressive, stock-heavy portfolio.

Sectors Info

  • Technology
    16%
  • Financials
    11%
  • Consumer Discretionary
    7%
  • Industrials
    6%
  • Telecommunications
    5%
  • Health Care
    5%
  • Consumer Staples
    3%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%

The sectoral allocation shows a diverse spread across technology, financial services, and consumer cyclicals, among others. This diversification helps spread risk and capitalize on growth across different sectors. However, the technology sector's significant weight could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.

Regions Info

  • North America
    30%
  • Asia Emerging
    10%
  • Europe Developed
    7%
  • Asia Developed
    7%
  • Japan
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographically, the portfolio is well-diversified, with a substantial allocation to North America and emerging Asia, reflecting a global investment strategy. This geographical spread can help mitigate region-specific risks and tap into growth opportunities worldwide. However, the relatively low exposure to Europe and emerging Europe suggests potential room for increased diversification.

Market capitalization Info

  • No data
    40%
  • Mega-cap
    29%
  • Large-cap
    20%
  • Mid-cap
    10%
  • Small-cap
    1%

The market capitalization breakdown, with a focus on mega and big-cap stocks, suggests a preference for established, large companies likely to offer stability and consistent returns. However, the small and micro-cap segments are underrepresented, potentially missing out on higher growth opportunities these companies can offer, albeit with increased risk.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

Considering the Efficient Frontier, the portfolio appears well-positioned for a cautious investor, balancing risk and return efficiently. However, there's always room for optimization, such as adjusting the equity-bond ratio or diversifying further into underrepresented sectors or geographies, to potentially enhance returns without significantly increasing risk.

Ongoing product costs Info

  • iShares Core € Govt Bond UCITS ETF EUR (Dist) 0.12%
  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • Weighted costs total (per year) 0.16%

The Total Expense Ratio (TER) of 0.16% is impressively low, which supports better long-term performance by minimizing the drag on returns. Keeping costs low is crucial, especially in a cautiously positioned portfolio where the objective is to preserve capital while achieving steady growth.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey