Building a Balanced Portfolio: How to mix stocks, forex, and other assets the smart way
A balanced investment portfolio gives your money a structured way to grow without exposing you to unnecessary risk.
Instead of putting everything into one place – you spread your capital across stocks, forex, bonds, real estate, and a few other options. This combination protects you when one market falls and gives stable returns over time.
For many years, people followed the old 60/40 rule.
- 60% in stocks
- 40% in bonds
- Average returns of 7 to 9 percent
But this model doesn’t work for people who want to venture into newer forms of investment like crypto and gold.
Also, it is quite outdated.
So, how should you shape your investment?
Once you understand how different assets balance each other, many investors take the next step using Standard Chartered’s diversified investment solutions, which allow them to manage multiple asset classes in one place.
This guide will show you a simple way to build a balanced portfolio using smart asset allocation. It works for beginners and experienced investors because it brings clarity and control to your financial planning.
What is a balanced portfolio?
A balanced portfolio is a setup where you place your money in different types of assets that do not react the same way to market changes. This is really important because when one part of your portfolio performs poorly – another part can do well to create a balance. And this is what helps you avoid heavy losses.
Think of it like a football team.
You cannot win with only forwards scoring goals. You need defenders as well as a goalkeeper to stop the other team.
Each player has a different job.
A balanced portfolio works exactly like that.
Example:
Stocks and gold often move in opposite directions.
Stocks fall – gold usually goes up
Gold cools down – stocks often rise
Adding both in the right ratio helps you create a more balanced portfolio.
A truly balanced portfolio means three advantages for you:
- Less fear during market crashes
- Smoother long term growth
- More control over your financial future
How to build a balanced investment portfolio
Building a balanced portfolio may look technical, but it is actually very easy, even for people with basic knowledge. Here is a step-by-step guide to show you how to do it:
- Know your risk level and your money goals
Most people start with directly choosing assets. But that is a wrong move. You need to first understand how much risk you can handle.
Every investor falls somewhere on the risk scale.
- Risk-averse means you prefer safety and do not like big market swings.
- Risk-tolerant means you can handle more ups and downs in exchange for higher growth.
Knowing where you stand helps you choose the right investment blend.
Your goals also guide your choices.
- Short term goals like buying a house in three to five years need safer assets.
- Long term goals such as retirement or saving for a child’s education can include more growth-focused investments because you have more time.
This will decide your entire portfolio.
- Understand the asset classes
The next step is to educate yourself on the different asset classes. You need to know what each asset actually does, because each one behaves differently according to the market condition.
This clarity will guide you in choosing the right investment options.
Here is a table to give you a clear idea on the most common asset types and what is best for you.
| Asset class | What it does | How it behaves | Best for | Suggested allocation range |
| Stocks | Long term growth and wealth building | Can rise or fall sharply depending on the market | Investors with medium or high risktolerance | 40% to 70% based on age and goals |
| Forex | Adds global currency protection | Highly volatile and fast moving | Investors wanting small global exposure | 2% to 10% as a small hedge |
| Bonds and fixed income | Adds stability and reduces overall risk | Steady during stock market ups and downs | Risk averseinvestors or short goals | 20% to 40% depending on risk level |
| Real estate | Builds value over many years and steady returns | Slow movement and less liquid | Future-focused investors wanting stability | 10% to 25% depending on budget |
| Commodities and gold | Protects during inflation and crises | Often moves opposite to stocks | Anyone wanting added safety | 5% to 15% based on market outlook |
Note
While selecting stocks – go with a blend of large-cap and mid-cap equity funds.
Large-cap funds give you stability because they come from established companies.
Mid-cap funds grow faster but move up and down more.
- Proper asset allocation to balance risk
You can decide how much of each asset to keep based on your risk level. Always make sure that your portfolio mix matches your comfort level and how long you plan to invest. Here are the different options you can use.
| What it is | When to use | What to do | |
| Conservative mix | It is a very safe setup with more stable assets |
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| Moderate mix | A balanced model with growth and stability |
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| Aggressive mix | This model focuses on growth with more stocks |
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- Allocations based on your age – How your portfolio should change over time
Your financial life does not stay the same, so your portfolio should not stay the same either. The money needs and goals you have in your early 20s are very different from what you face later in life. A good rule is to let your portfolio grow with you.
20s – Build the foundation
This is the best time to take risks because you have years ahead to recover from mistakes. This stage gives you room to learn and grow.
- Put most of your money toward growth-focused assets
- Try different types of investments to understand what works for you
- Start small and increase slowly as your income grows
- Keep a simple plan and stay consistent every month
30s and 40s – Growth and safety
At this stage your life becomes more structured: family, loans, school fees. So, make sure your portfolio reflects that.
- Reduce extreme risk positions that can shake your finances
- Add more fixed income and real estate investments
- Still keep a healthy amount of equities for future growth
- Balance two things: retirement planning + present-day needs
- Avoid switching fully to “safe mode,” as you still have years of compounding ahead
50s and 60s – Protect the capital you built
Now your priority is protecting your savings.
- Move more money into stable and income-producing assets
- Hold some growth assets to keep up with living costs
- Choose investments that offer predictability
- Revisit your plan every year as you get closer to retirement
- Diversify inside each asset class
Diversification is not only about mixing different asset groups. You also need variety inside each group to avoid sudden shocks.
Stocks
If you are adding stocks to your portfolio – try not to stick to a single sector. You can diversify further by buying stocks from companies operating in different sectors like technology and healthcare or finance and retail.
This way, one weak sector will not pull down your entire stock basket. You can also include a few global stocks to reduce dependence on your home market.
Forex
Forex is easier to balance. You can combine major currency pairs so that one sudden currency movement does not affect your whole position.
Bonds
For bonds, look for variety in three areas – the issuer, the maturity period, and the credit rating.
A combination of these creates smoother returns because each type reacts differently to market changes.
- Watch market trends and global factors
Currency changes and global events can affect your returns, especially if you invest in international stocks or forex. Instead of watching the news all day, follow a simple system like this.
Track only the key signals
- Interest rate changes
- Inflation levels
- Major policy updates from central banks
- Currency direction of your main investment markets
These are enough to understand the general direction of the market.
Set a monthly “market check” routine
Once a month, check these things:
- How your investments performed
- Any major economic updates
- If your asset mix still matches your comfort level
Use simple tools
- A market summary from your bank
- A financial news app
- Your broker’s “market overview” page
- Review and rebalance your portfolio once a year
Your portfolio will change on its own as markets rise or fall. Some assets grow faster while others slow down, and this can shift your risk level without you noticing.
Rebalancing helps bring everything back to the mix you want.
For example
If your stocks grow too much, you can move a small part back into bonds or other assets to keep things steady.
Major life changes like a new job, marriage or kids may also call for updates.
So, make sure you check and adjust your portfolio every year to stay on top of your investment goals.
Conclusion
And that’s how you create a balanced portfolio.
It keeps your money steady during market highs and lows and helps you grow wealth without chasing risky trends.
And if you need extra help, you can always use Standard Chartered’s investment services like Online Equity Trading, Mutual Funds, and FX Trading to build your portfolio with expert support.
