TL;DR
Portfolio Allocation: projected (20y) is £330,224 — Growth · 6.16% expected return.
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Portfolio Allocation
Match a risk profile or build your own mix
Projected (20y)
£330,224
Growth · 6.16% expected return
Expected Return
6.2%
Volatility (σ)
14.6%
1-yr Worst Case (5%)
£82,002
1-yr Best Case (95%)
£130,308
Quick context
Read full guide: Diversification →- Owning 100 stocks instead of 1 eliminates company-specific risk entirely — the market only pays you for unavoidable risk.
- One global multi-asset fund (e.g. Vanguard LifeStrategy, HSBC Global Strategy) delivers all four layers of diversification in a single ticker.
- Diversification cannot eliminate market risk — in 2008 and March 2020 almost everything fell together. The fix is time and stomach, not more funds.
Stress test
What if the world changes? Toggle a scenario.
simulator
New projected (20y)
£330,224
Δ vs baseline
+£0
Real value 1yr out
£322,170
@ 2.5% CPI
Today£330,224
Now£330,224
Current plan. Scenario figures are illustrative — they scale your current calculation rather than re-running every band. Useful for direction, not for filing.
Your allocation
80%
17%
StocksBondsCash
Aggressive
Growth
Balanced
Conservative
Defensive
Rule of thumb: stocks % ≈ 110 − age. Younger = more stocks (longer to recover). Closer to retirement = more bonds & cash (smoother ride).
What a typical year looks like
£100,000
Worst Year
-18.0%
Expected
+6.2%
Good Year
+30.3%
The honesty test: if your £100,000 portfolio dropped to £82,002 in a bad year, would you sell or stay invested? If you'd sell — pick a less aggressive profile.
Watch & learn
YouTube · The Plain Bagel
Asset Allocation Explained
A short, plain-English walkthrough relevant to this page. We curate from trusted UK personal finance creators.
Watch on YouTubeKeep exploring