What Is a Balanced Portfolio

What Is a Balanced Portfolio

If you have ever met with a financial advisor or discussed your investments with your lawyer or accountant, you may have come across the term “balanced portfolio.”

So, what is a balanced portfolio for an investor?

A balanced portfolio can mean different things for different people. For most people, it means balancing risk vs reward in stocks and bonds. Stocks protect the portfolio when the economy is good and bonds protect the portfolio during down times.

But a balanced portfolio can also mean balancing investments that are going to yield an income with investments that are going to increase in value, whether or not they yield an income.

For some, a balanced portfolio may include investments in real estate, so that everything invested is not just in the stock and bond market.

A balanced portfolio may include investments in private mortgages, which are higher risk, but also significantly higher return. Big banks tend to promote the investment vehicles that they have and that give them the best fee. In order to consider investments outside of the big bank purview, one has to have an open mind and the ability to think outside the box.

The point here, is that a balanced portfolio is intended to reduce risk, but which kinds of risk, really depends on the individual client and his or her goals. And the other intention is to increase value, either from appreciation in stock or increased revenue from certain investments.

Only you and your financial adviser can decide what is the best combination of investments that suits your own needs for balance in a portfolio.


Metropointe Mortgage Investment Corporation was founded in 2011 and offers the ability to invest in a diversified pool of mortgages secured by real estate in British Columbia. In addition, Metropointe also acts as a private mortgage lender. 

If you have questions about our blog or would like to contact us regarding investing or borrowing, please call us in Surrey at (604) 449-1700.

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