Your Personal Goals
Your time horizon should determine your risk.
The most important decision you’ll make as an investor isn’t which fund to buy. More vital to your long-term financial success is how you split money among different types of assets.
This asset selection will have the most effect on the two things you want to control most in your portfolio: the potential return and the level of volatility.
A smart, well-diversified portfolio can get you both a good return and low volatility. It’s the financial equivalent of having your cake and eating it, too.
Here are some keys to assembling a solid portfolio: