The structural logic behind how portfolios are built — from core-satellite construction to strategic policy mixes and rebalancing discipline.
Every framework below solves a different problem: how much to index versus actively tilt, how to split growth and stability, and how to keep a portfolio aligned with its original intent over time.
A core-satellite portfolio pairs a large, broadly diversified "core" — typically low-cost index exposure — with smaller "satellite" positions intended to express specific views, sectors, or strategies. The core anchors the portfolio's risk and cost profile, while satellites are sized so that an individual position going wrong does not derail the whole plan.
Indexation means holding a broad, rules-based basket designed to track a market benchmark rather than trying to outperform it through security selection. It tends to prioritize low cost, broad diversification, and tax efficiency, at the trade-off of accepting whatever the tracked market delivers — including declines.
The split between equities and fixed income is often the single largest driver of a portfolio's overall volatility. Equities are generally sought for long-run growth potential, while fixed income is generally sought for income and relative stability. Common planning splits scale with time horizon:
| Horizon | Sample Equity | Sample Fixed Income |
|---|---|---|
| 25+ years | 80–100% | 0–20% |
| 10–25 years | 60–80% | 20–40% |
| Under 10 years | 30–60% | 40–70% |
A long-term policy mix set deliberately in advance, then held through short-term market noise rather than adjusted reactively.
Open planning tools →Spreading exposure across assets that do not all move together, aiming to reduce the impact of any single position or sector.
Open planning tools →The length of time before capital is needed, which shapes how much short-term volatility a portfolio can reasonably absorb.
Open planning tools →Over time, market movement drifts a portfolio away from its target allocation — typically toward whatever asset class has recently performed best. Rebalancing resets the mix back toward target, which can help maintain an intended risk level, though it does not guarantee improved returns.
Try the Rebalancing ToolRebalancing Triggers
Open allocation frameworks, run the planning tools, and review investor protection limits before you put real capital to work.