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Lesson library
Portfolio Building
Build on diversification: match money to goals and time horizons, choose an asset allocation, understand index funds, ETFs and overlap, bond interest-rate risk, lump sum vs recurring investing, rebalancing, fees and compounding, and fair benchmarks. All numbers are hypothetical.
- 01
Goals, time horizons and cash needs
Before choosing any investment, sort your money by when you will need it. Money needed soon should not depend on the stock market.
9 min
- 02
Asset allocation: the biggest portfolio decision
How you split money between stocks, bonds and cash shapes the ride more than which individual fund you pick.
10 min
- 03
Index funds, ETFs and hidden overlap
Funds bundle many holdings into one purchase. Owning several funds can quietly concentrate you in the same companies.
11 min
- 04
Bonds and interest-rate risk
Bonds pay interest, but their prices move opposite to interest rates. Duration estimates how much.
11 min
- 05
Recurring contributions vs a lump sum
Investing a fixed amount on a schedule reduces regret and timing pressure. Investing all at once gives the money longer in the market. Neither wins every time.
11 min
- 06
Rebalancing and drift
Markets push your mix away from its target. Rebalancing brings it back so your risk level stays the one you chose.
10 min
- 07
Fees and compounding
A fee is taken every year from a growing balance, so small percentages compound into large dollar amounts over decades.
10 min
- 08
Reviewing performance against the right benchmark
A return means little on its own. Compare it with a benchmark that matches what you actually own.
10 min