1. Stable Portfolio Management Methods
- Core Principle: The goal is to minimize risk and pursue steady returns.
- Portfolio Composition:
- Stocks (30% or less): Focus on dividend stocks and large-cap blue-chip stocks. Example: Samsung Electronics, Apple.
- Bonds (50% or more): Invest in stable financial products such as government or corporate bonds.
- Cash and Cash Equivalents (20%): Hold highly liquid assets such as bank deposits and money market funds (MMF).
- Real Estate or ETFs (Optional): Consider real estate indirect investments (REITs) or stable index ETFs.
- Advantages:
- Less affected by market volatility.
- Expect steady returns in the long term.
- Disadvantages:
- Difficult to expect high returns.
- Real asset growth may be limited due to inflation.
2. Aggressive Investment Methods
- Core Principle: Accept high risks for high returns.
- Portfolio Composition:
- Stocks (70% or more): High-growth small and medium-sized stocks, sector-leading stocks (e.g., IT, biotech), foreign stocks, etc.
- Cryptocurrencies (Optional): Highly volatile digital assets such as Bitcoin and Ethereum.
- Venture Capital/Startup Investments (Optional): Invest in early-stage companies for high returns.
- Derivatives (Optional): Pursue large profits in a short period through leveraged trading such as futures and options.
- Advantages:
- Potential for high profits in a short period of time.
- Direct participation in innovative technologies or trends.
- Disadvantages:
- Very sensitive to market volatility.
- High risk of loss and potential loss of principal.
3. Finding Common Ground Between the Two Approaches
Balanced Portfolio Strategy
- Apply the 60:40 Rule:
- Allocate 60% to stable assets (bonds, large-cap stocks, cash equivalents).
- Allocate 40% to aggressive assets (small and medium-sized stocks, foreign stocks, cryptocurrencies, etc.).
- Age-Based Asset Allocation Rule:
- Set the bond allocation to match your age, and allocate the rest to aggressive assets such as stocks. Example: If you are 30 years old, 30% bonds and 70% stocks.
- Goal Setting and Rebalancing:
- Focus on stable assets for short-term goals (e.g., 1-3 years).
- Place more weight on aggressive assets for mid- to long-term goals (e.g., 5-10 years), and conduct regular rebalancing.
- Secure Emergency Funds:
- Always hold at least 6 months of living expenses in cash equivalents to prepare for emergencies.
4. Conclusion: Find Your Own Balance!
Stable asset management reduces "sleepless nights," and aggressive investment provides opportunities to "turn dreams into reality." The key is to harmoniously combine the two strategies according to your risk tolerance, investment goals, and time horizon.
- Beginner Investors: Recommend a strategy of increasing the proportion of stable assets and gradually increasing aggressive investments.
- Experienced Investors: Adjust the portfolio flexibly according to market conditions, pursue high returns, but proceed in a way that minimizes losses.
Investing is like a marathon. Short sprints are important, but ultimately, a sustainable pace and strategy are the keys to success. 🏃♂️💼