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Welcome Nickjr. We're glad you could join us.

One size does not fit all in designing a portfolio. This depends in part on your risk tolerance and how close you are to retirement. Even your personal preferences.

Do you invest in blue chips? Value stocks? Growth stocks? Speculative high flyers? Bonds?

Conservative investors often use an S&P 500 Index fund (or etf) as the core investment. Maybe as much as 50% of value. That's because over time S&P 500 Index funds tend to outperform other equities. They are low cost in terms of expense ratio and commission and fees. And they tend to be fairly solid.

Blue chips and bonds are even more conservative.

Volatility is a concern with the others. If you own equities when things are doing well, they will outperform other investments, sometimes by a lot. But they can also go way down. So this kind of investing requires a certain risk tolerance. And good decisions on when to sell.

Bottom line is I think most investors own some index funds, but the amount can be between 10 and 50% of your portfolio depending on what works for you. Personally I prefer growth stocks, but when none of them seem attractive, then funds go into index funds.
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