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Written by: Chris Hill | Hargreaves Lansdown
The SpaceX IPO has certainly generated its fair share of headlines, and space puns.
It’s also likely to have caught the attention of newer investors. And for many, it can be tricky to know what’s right or wrong when starting out.
When it comes to building out an investment portfolio, it can be hard to know where to begin, what type of investments to hold, and how to make sure you’re properly diversified (not holding all your eggs in one basket).
This is where a core-satellite strategy can help.
This article is for information only and not personal financial advice. Investing can help your money grow, but the value of investments can rise and fall, so you could get back less than you put in. Investing is for the long term, typically 5 years or more.
If you’re not sure what’s right for you, a financial adviser can help.
It’s all about balance
Think of your investment portfolio like a solar system.
With a core-satellite strategy, your core holdings are the sun – the foundations, or a more stable centre.
Your satellites are the planets. They're the supporting investments that provide the finishing touches.
The core
This should make up around 70% or more of your portfolio and be broadly diversified. Its job is to do the heavy lifting. It could be made up of a multi-asset fund, Exchange Traded Funds (ETFs) or one of our ready-made investments.
The aim is to give you exposure to investment markets across a variety of regions and asset classes, avoiding the need for too many decisions once invested. It’s the core that helps you sleep at night.
The satellites
This should make up around 30% and can be used to back your own ideas. Investments might include a collection of funds with a specific regional or sector focus, or individual company shares. For anyone participating in the SpaceX IPO, this is where the shares might sit.
The SpaceX IPO has certainly generated its fair share of headlines, and space puns.
It’s also likely to have caught the attention of newer investors. And for many, it can be tricky to know what’s right or wrong when starting out.
When it comes to building out an investment portfolio, it can be hard to know where to begin, what type of investments to hold, and how to make sure you’re properly diversified (not holding all your eggs in one basket).
This is where a core-satellite strategy can help.
This article is for information only and not personal financial advice. Investing can help your money grow, but the value of investments can rise and fall, so you could get back less than you put in. Investing is for the long term, typically 5 years or more.
If you’re not sure what’s right for you, a financial adviser can help.
It’s all about balance
Think of your investment portfolio like a solar system.
With a core-satellite strategy, your core holdings are the sun – the foundations, or a more stable centre.
Your satellites are the planets. They're the supporting investments that provide the finishing touches.
The core
This should make up around 70% or more of your portfolio and be broadly diversified. Its job is to do the heavy lifting. It could be made up of a multi-asset fund, Exchange Traded Funds (ETFs) or one of our ready-made investments.
The aim is to give you exposure to investment markets across a variety of regions and asset classes, avoiding the need for too many decisions once invested. It’s the core that helps you sleep at night.
The satellites
This should make up around 30% and can be used to back your own ideas. Investments might include a collection of funds with a specific regional or sector focus, or individual company shares. For anyone participating in the SpaceX IPO, this is where the shares might sit.
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