How Should I Split My Investment Portfolio? A Simple Guide for 2025

If you’ve got some money saved and you’re ready to invest, you’re already ahead of the game. But there’s one question nearly every beginner (and even some seasoned investors) asks:
“How should I split my investment portfolio?”

And honestly, it’s a great question. Because how you divide your money across different investments can make a huge difference to how it performs and how you feel about it along the way.

Whether you're just starting out or reviewing your current setup for 2025, this guide will walk you through how to split your investment portfolio based on your goals, comfort with risk, and time horizon. Plain English only. No jargon. Just smart, balanced advice.

What does "splitting" your portfolio actually mean?

When people talk about splitting a portfolio, they’re really asking about asset allocation. That simply means how much of your money goes into different types of investments. The main ones are:

• Shares (also called equities)
• Bonds (loans to governments or companies)
• Property funds or REITs
• Cash or near-cash assets like money market funds

Each of these works a bit differently. Shares tend to offer higher long-term growth but come with more short-term ups and downs. Bonds and cash are usually steadier but grow slower. A good mix balances those forces based on your situation.

So how should you split it in 2025?

The right split depends mostly on three things:

1. Your goals

What are you investing for? A house deposit in a few years? Retirement in 30? Just trying to grow your savings faster than a bank account?

Shorter-term goals usually need more stability, so you might lean towards cash or bonds. Longer-term goals have more time to recover from bumps, so shares might make up a bigger slice.

2. Your comfort with risk

Are you the type to check your balance daily and worry? Or are you happy to set it and forget it for a while?

If you’re naturally cautious, it’s completely fine to keep more of your portfolio in bonds or low-risk funds. If you don’t mind the ride, more shares can help your money grow over time. You don’t have to be fearless, just honest.

3. Your age and stage of life

As a general guide, younger investors can afford to be more adventurous because time is on their side. If you’re closer to retirement or planning to draw on your money soon, your portfolio should probably be more conservative.

It’s all about adjusting the balance as you move through life. The split that works for you at 30 may not suit you at 55.

An example of a balanced split

Say you’re in your 40s, saving for retirement, and you’re comfortable with some risk but want a safety cushion too.

You might go for something like:

• Around 60 percent in global shares and equity funds
• About 30 percent in government and corporate bond funds
• The rest in property, infrastructure or a bit of cash for flexibility

That gives your money the chance to grow while still protecting part of it if markets take a dip.

How to manage your split

Once you’ve picked your balance, the next step is sticking to it. That doesn’t mean checking your account every day. But it does mean reviewing once or twice a year to make sure nothing’s drifted too far off.

Sometimes one part of your portfolio grows faster than the rest, which can shift the whole balance. That’s where rebalancing comes in. You simply top up the parts that have fallen behind or move a bit from the overgrown side to the other.

Life changes too. New job? Baby? Big purchase? It’s OK to tweak your portfolio split to fit your new reality.

There’s no perfect formula for everyone. The best portfolio split is the one that fits your life, your goals and your personality. It doesn’t need to be flashy. It just needs to work for you.

If you’re investing for the first time, start simple. Choose a mix that gives you confidence, not anxiety. As your experience and savings grow, your strategy can grow with you.

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