Where does Momentum Fit in your Portfolio?

This is a general example and investors should consult an independent, licensed financial advisor to get advice specific to their individual needs.

As an example, let’s take an investor with a balanced risk profile and a time horizon of greater than 5 years.

Generally, a balanced portfolio would consist of 50 – 55% of equities and a growth portfolio 70% equities.

The equities portion should be allocated to both the ASX and international markets and divided between large cap, mid cap, small cap stocks and alternative strategies ie long/ short.

In addition to geographic spread and market capitalisation, your equity allocation should be spread across varying strategy types to enhance diversification. Allocating to various strategies within your portfolio will position you to capitalise on differing market conditions and inefficiencies to smooth out returns through market cycles.

An example asset allocation is below:

assets allocation