What Percent of Investments Should Be in Stocks
So, what percent of investments should be in stocks? In investing and wealth accumulation, it is important to know the exact percentage of your total assets that you should invest in the stock market. There are various investment vehicles you can consider. One is stock investing, you can also try mutual funds, invest in bonds, real estate, owning a business and franchising.
But the question is should you put all your eggs in one basket? Of course not! Diversification is very important. As we have discussed awhile ago, if you invest only in stocks, and the market crash suddenly, what do you think will happen to your investment funds? Will you lose money when the stock market crash? Yes!
However, even though the stock market crashed, you can recover your losses in stocks if other investments are performing good.
Related: Investing in Stocks Vs. Mutual Funds
You should distribute your assets well if you don’t want to lose money. Diversification simply means allocating your assets properly. Today, let us find out what percent of investments should be in stocks.
Diversify Your AssetsWhat Percent of Investments Should Be in Stocks
The third column equity mutual funds and other high growth securities are high risk types of investments. This will explain to you what percent of investments should be in stocks according to your age. If you are at age 30 now, your stocks investments should be 40% of your total assets.
Did you find this article useful? Kindly share it with your friends. If you have questions, feel free to leave a comment now! Thank you!