Differences & Similarities of Aggressive & Conservative Asset Mix Strategies

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Aggressive and conservative asset allocation strategies have a variety of differences and similarities that you should always be aware of. Learn about the differences and similarities between aggressive and conservative asset allocation strategies with help from the managing partner at an insurance organization in this free video clip.

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Video Transcript

Hi, I'm Mitchell Smith, managing partner of Universal Insurance Services and Universal Partners. Today, we're going to discuss differences and similarities of aggressive and conservative asset allocation strategies. Whether your asset mix is aggressive or conservative, it doesn't necessarily matter. It's more about what you are trying to accomplish. When you are aggressive, typically you are taking more risk. When you are conservative, obviously you're taking less risk. It's really about the balance of the holdings inside of your particular portfolio. Aggressive would mean more likely you're going to have more stocks or what they call equities. When you are conservative, you're going to balance that portfolio with more bonds or fixed income investments. When I'm talking about fixed income, I'm talking about things like cash or bonds and bonds have different durations. The shorter duration for a bond, the less risky. So you may in a conservative mix portfolio have more of something like that. You may dabble with those things in aggressive and those would be similarities. You may have some overlapping qualities, however, the overall risk of the two is really where you're to differentiate. It's very important to understand your risk or the word standard deviation. Make sure you talk to your investment professional and find out what your standard deviation is to understand your differences and similarities. Thanks for watching today's discussion on asset mixed strategies.

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