Andy Egwim breaks down core-satellite investing: put 80% in diversified index funds, then use the remaining 20% for riskier bets. A doctor in Ontario uses this split with 5% in gold and 15% in individual stocks and startups.
80% core in broad diversified index funds; 20% satellites (5% gold, 15% individual stocks/startups).
I'll give you an example myself I could decide the bulk of my investment might be in index funds but I've got like 10%, 20% that like riskier investments I've always held individual companies myself for many years but I've got someone I think a doctor who's based in Ontario now who's just finished four weeks academy his strategy is that 80% of his investment his family fund are in Broadwell diversified index fund like FTSE all index not FTSE 100 that's not that diversified or in S&P 500 and then they've got the other 20% they decided to put 5% in gold and the other 15% they've invested in different things like individual stocks they've actually started looking at startups so they are taking higher risk with that 20% because they are likely to get far better returns and there's also a risk of loss but if they lose the 20% or the 10% they still got the 80% so that the cost at night approach they the core is the index front all right.
