60/40 portfolio

A 60/40 portfolio is an investment strategy that divides assets into 60% stocks (equities) and 40% bonds (fixed income). This allocation aims to balance growth potential with stability, seeking to grow wealth over time while reducing risk during market downturns. Stocks generally offer higher returns but come with more volatility, while bonds tend to be more stable but offer lower returns. The 60/40 mix is a common, diversified approach suitable for many investors seeking a steady balance between growth and preservation of capital.