Asset Allocation Models to Maximize Your Returns

Discover the best asset allocation models to maximize your investment portfolio’s returns while working within your risk appetite.

At first glance, many investors assume that the basic asset allocation decision is an easy one. After all, at this level you are focusing on only two choices—stocks and bonds.

While the choices are few, the way you allocate your portfolio among these two categories will have by far the greatest impact on your performance of any investment decision you make. 

To see how real investors like you navigate this decision, check out the AAII Asset Allocation Survey, which offers monthly data on how individual investors currently position their portfolios.

We developed this Asset Allocation Models page to ensure that you receive the information and insights needed to find the best asset allocation for your investing goals and tolerance for risk.

If you think you are already an Asset Allocation Pro, then take our quiz to test your knowledge. If you’re uncertain, the AAII Asset Allocation Mini Course is found on the right-hand side of this page. Our PRISM Wealth-Building Process can help you clarify your time horizon and tolerance for risk.

For those who simply want to dig into our investor profiles and the risk/return numbers of our three suggested allocations, use the models below.

• Stocks and Stock Funds: 64.1%, down 2.1 percentage points
• Bonds and Bond Funds: 16.2%, up 0.7 percentage points
• Cash: 19.7%, up 1.4 percentage points

• Stocks: 28.6%, down 1.2 percentage points
• Stocks Funds: 35.5%, down 0.9 percentage points
• Bonds: 5.1%, up 1.0 percentage points
• Bond Funds: 11.1%, down 0.2 percentage points

• Stocks/Stock Funds: 61.5%
• Bonds/Bond Funds: 16.0%
• Cash: 22.5%