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Ideal Portfolio Weighting

Discussion in 'Investing Strategies' started by MasterCheif, 15th Jun, 2008.

  1. MasterCheif

    MasterCheif Active Member

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    Hi,

    I was just wondering what your ideal portfolio weighting is currently?

    e.g. 33% property 33% equities 33% cash?

    I would be interested to hear the various strategies people are currently using..

    Cheers.
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi MasterCheif,

    Everybody's "ideal" portfolio weighting is different.
    This can usually be calculated by finding out their risk profile.

    Cheers,

    Dan
     
  3. MasterCheif

    MasterCheif Active Member

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    would be interested to hear some examples - assuming high risk?
     
  4. Billv

    Billv Getting there

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    Ideal? it will vary but my current position is
    80% property, 18% cash, 2% shares
    My super is 100% in cash
    Cheers
     
  5. DaveA

    DaveA Well-Known Member

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    for anyone who has property, this throws out the % quite alot....

    at the moment i would have 90+ % in property due to the large purchase price and fantastic gearing. However if you looked at initial outlays (inc super), id have like 40% property weighting & 5% cash....

    gets really difficult when you start talking about gearing... its easy to have a $mill in property (2 or 3 houses and 200k down at 80% LVR, 50k down with 95%) but to get to $mill shares, at a safe LVR you need 150% more than the 80% LVR & 1000% with the 95% LVR...
     
  6. MasterCheif

    MasterCheif Active Member

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    Why such a small amount of shares? Not really interested to hear "as is" but ideal - what you would like it to be..
     
  7. naz

    naz Member

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    I've got what I think is pretty ideal (for now at least) and also fairly high risk:
    15% Australian Large Cap Shares
    15% Australian Small Cap Shares
    10% European Shares
    15% Australian Property
    10% European Property
    10% Asian Property
    15% Emerging Markets
    10% Commodities

    Almost all though ETFS. Includes geared amounts. Does not include super (which is not much different - but without the variety - and is only a very small amount).

    Would be interested to hear people's comments.
     
  8. Billv

    Billv Getting there

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    MasterCheif

    There is no such thing as an ideal mix.

    The percentages for me will vary as we move through each cycle
    and could at times tip in favour of properties and other times in favour of shares.

    Why such a conservative mix now?
    Because I have done my own research and it's clear to me that now is not a good time to risk my property equity or my cash for questionable returns.

    I still buy some shares but only because I buy them with pretax $
    and also because it's a "buy 1 get 1 free" scheme.
    Otherwise I wouldn't bother, my cash is safer sitting in my offset account.

    Cheers
     
  9. Young Gun

    Young Gun Guest

    super = 100% cash!!!!! what are your doing???? lol

    not trying to time the market are you?... :)


    me..... 70% Aust Shares, 20% international & 10% property in super
    100% Aust shares outside of super
     
  10. Young Gun

    Young Gun Guest

    Not a bad mix naz from a financial planners prospective (for a high growth investor of course). A little more weighting towards property than I'd recommend, but that being said, you should do well for the long run.
     
  11. Billv

    Billv Getting there

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    It's called capital preservation.
    I will switch over to the balance fund when the dark clouds disappear,
    in 12 months or so.
    Cheers