A balanced portfolio traditionally involves a 60/40 mixture of equities and bonds, with the proportion of bonds rising after retirement to reduce volatility. But with bond yields at very low levels, private investors are looking elsewhere.
Other low-risk investment options are emerging as alternatives as individual investors and fund managers look beyond the conventional portfolio structure. They’re now taking full advantage of new and evolving asset classes like cryptocurrencies and property.
Mike Deverell, partner and investment manager at Equilibrium Investment Management, thinks the days are behind us when a balanced portfolio relied on equities and bonds.