Today many Companies use generic model portfolios based on common risk profiles. You may also select 'LifeStrategy' funds of differenct percentages of equities to bonds. e.g. 100/0, 60/40, 80/20 or target retirement funds. If you are retirement date funds that move from high levels of equiies to lower levels of equities the nearer the selected retirement date. You may want a mix of both.
If you are investing for retirement you portfolio may look very different if you are investing in retirement or taking more risk at a younger age.
Model Portfolios get you off to a good start and you can always tweak them to meed you own needs.
On thing is for sure, picking index funds is a lot easier than picking winners, the evidence suggests that 85% of Fund Managers fail to beat the market after costs.
The Monevator Slow & Steady portfolio
is a model portfolio that aims to illustrate how new private investors can overcome some of the difficulties associated with passive investing in the UK. If you look at the history its demonstrates passive index investing in action.
The 9 lazy portfolios are the blazing beacons of passive investing.
Once you’ve absorbed all the advice and theory you can stand about risk, cost and diversification, you’re still left with one crucial question:
“What does a simple, low cost, diversified portfolio look like?”
The Monevator Permant Portfolio
Clued-up passive investors know that all sorts of simple lazy portfolios of index funds will beat most expensive actively managed ‘solutions’.
These are not recommendations but a look at Portfolios. I have a model based on Tim Hale's design but more cash and less bonds as I am now retired for 13yrs. The Market Crash of 2008 and my Financial Advisors hight costs, poor performance caused me to take a DIY approach. My life savings was switch from Active to Passive in 2011. paragraph