Core-and-Satellite Strategy for Market Volatility

Investing can be tricky because markets go up and down.

The core-and-satellite strategy helps investors manage this by splitting their money into two parts.

The 'core' is the big part, about 60-70%, and it's made up of safe, stable investments like large company stocks and mixed funds.

This part grows steadily and protects your money.

The 'satellite' is the smaller part, about 30-40%, and it's for riskier but potentially more rewarding investments like smaller company stocks.

This part can grow faster but is also more likely to lose value.

Together, they help your money grow safely and give you the chance for bigger gains.

Over the last 20 years, smaller company stocks have grown about 14-17% each year, which is more than larger companies.

This strategy helps investors stay balanced and avoid big losses.