Moderate Model Portfolio


Moderate Model Portfolio

Moderate model portfolios are a step above conservative, ideal for the investor who wants to achieve growth from their investment while still preserving a tight hold on their portfolio’s capital. The moderate model can give inflation protection, though this requires a willingness to take on a slightly higher amount of risk. Capital gains are enhanced by choosing securities which pay high levels of dividends, option premiums or coupon payments. Moderate portfolios can lean to one side or the other: there are moderately-conservative portfolios and ones that have a higher amount of risk and so are moderately-aggressive portfolios. Portfolios that are more moderately-aggressive are also known as “balanced portfolios” as they provide a balance of growth and income by dividing assets equally between fixed-income securities and equities.