How to Build a Balanced Portfolio

By Eagle Eye Team | Nov 22, 2025 | 8 min read

A balanced portfolio is the foundation of long-term wealth creation. Learn the principles of asset allocation and how to build a portfolio that works for your financial goals.

What is a Balanced Portfolio?

A balanced portfolio combines different asset classes—stocks, bonds, and cash—in appropriate proportions to manage risk while achieving growth. The key is diversification: spreading investments across asset classes so that no single investment disproportionately affects returns.

The 60-30-10 Rule

This classic allocation strategy suggests:

60% Equity: Growth through stocks and equity mutual funds
30% Debt/Bonds: Stability through fixed-income securities
10% Cash: Liquidity and emergency funds

This balanced approach provides growth potential while managing downside risk.

Portfolio Allocation by Age

Age 20-30 (Aggressive): 80% equity, 15% debt, 5% cash
Age 30-40 (Moderate): 70% equity, 20% debt, 10% cash
Age 40-50 (Conservative): 60% equity, 30% debt, 10% cash
Age 50-60 (Conservative): 50% equity, 40% debt, 10% cash
Age 60+ (Preservative): 30% equity, 60% debt, 10% cash

How to Rebalance Your Portfolio

Rebalance annually or when allocations drift 5% from targets. This forces you to "buy low and sell high" systematically.

Ready to build your balanced portfolio? Contact our advisors for personalized recommendations.