Aging Portfolio
Aging portfolio is a financial strategy that helps even out the ups and downs of investing. It works like this. Let's say you have lots of money to invest, but don't want to take on too much risk, so you decide to spread it out across a few different investments.
For the aging portfolio, you would buy a few different investments and then, over time, you would add more of your money to different investments that you already own until all of your money is invested.
By doing this, you can keep your risk down but still get a good return from your investments. The reason it's called an aging portfolio is because it takes time for your investments to grow, just like a bottle of wine gets better with age. So the older your investments are, the better your return will be.
For the aging portfolio, you would buy a few different investments and then, over time, you would add more of your money to different investments that you already own until all of your money is invested.
By doing this, you can keep your risk down but still get a good return from your investments. The reason it's called an aging portfolio is because it takes time for your investments to grow, just like a bottle of wine gets better with age. So the older your investments are, the better your return will be.