A methodology to select an appropriate asset allocation considering a moderate risk profile portfolio

Abstract

The purpose of this research is trying to explain how to choose a right asset allocation considering a moderate risk profile portfolio. In order to do so, we will analysis different methods, ideas and approaches to identify the best combination of all these factors to choose a proper assets allocation. We will study the profile of our client by considering the maximum risk in which he / she is able to enforce. Due the risk tolerance, the current capital situation and thanks to the investments strategies, macro and micro analysis and after applying the theory, that we are going to explain, we will able to build the best possible assets allocation’s combination to improve as much as possible the return of our portfolio.