1 month ago

Core‑Satellite Strategy Balances Gains and Goals

Core‑Satellite Strategy Balances Gains and Goals
Satellite portfolio to the rescue · thehindubusinessline.com

Imagine you have two piggy banks.

One is for long‑term savings, like saving for a house.

The other is for quick trades, like buying and selling stocks.

The quick‑trade bank is called the satellite portfolio.

It tries to make money by buying low and selling high.

If it makes money, you can put that money back into the quick‑trade bank, keep it in a savings account, or use it to help the long‑term bank if it is behind.

Moving money between the two banks can keep your savings on track.

The author also teaches people how to run these two banks themselves.

Key facts

Framework
Core‑satellite
Primary focus
Goal‑based core portfolio
Secondary focus
Market‑timing satellite portfolio
Typical use of gains
Reinvest, bank deposits, bridge core shortfall
Author offers
Training programmes for personal investment management

Sources

Related news