Savory

Initial portfolio methodology for advice-only retail investors.

Practical ranges, model mixes, tactical tilts, and guardrails for Prudent, Balanced, and Dynamic profiles built around diversified ETFs and funds.

Methodology stance

Start with a simple core, then add small diversifiers only where they improve resilience.

Use diversified building blocks

Recommendations should default to low-cost, liquid ETFs or broad mutual funds across each asset class. No single-stock, single-country, or leveraged products.

Let risk live mostly in equities

Risk profile changes should primarily shift the stock-bond-cash mix. Real estate, commodities, and crypto stay satellite sleeves rather than becoming the core driver of outcomes.

Keep portfolios explainable

Every recommendation should be understandable in plain language: growth assets, stabilizers, inflation diversifiers, and optional high-volatility satellites.

Product fit

Designed for explainable, non-discretionary guidance.

  • Recommendations should point users toward diversified ETFs, index funds, and cash vehicles they can buy in standard retail brokerage accounts.
  • The framework avoids concentrated bets, market timing language, and institutional-only assets.
  • Tactical changes are bounded tilts inside a profile’s range, not wholesale strategy shifts.

Prudent

Capital preservation first, growth second.

Risk profile

Lower volatility / shorter horizon / high drawdown sensitivity

Built for investors who need a steadier ride. Bonds and cash do most of the stabilizing work, while equities remain present so the portfolio can still outpace inflation over time.

Equities

Use broad domestic and international stock ETFs.

20%–45%
20% min45% max

Bonds

Favor diversified, high-quality government and investment-grade bond funds.

35%–60%
35% min60% max

Cash

High-yield cash or ultra-short duration funds for liquidity and behavioral comfort.

5%–15%
5% min15% max

Real estate

Listed global REIT ETF exposure only.

0%–10%
0% min10% max

Cryptocurrencies

Optional only, capped tightly because this is an advice-only retail product.

0%–2%
0% min2% max

Commodities

Broad diversified commodity ETF or gold-focused sleeve.

0%–8%
0% min8% max

Example model allocation

Equities
35%
Bonds
45%
Cash
10%
Real estate
5%
Cryptocurrencies
0%
Commodities
5%

Balanced

Growth and resilience in roughly equal measure.

Risk profile

Moderate volatility / medium-to-long horizon / willing to stay invested through cycles

Balanced profiles should earn most of their return from diversified equities while still keeping enough bonds, cash, and real assets to soften recessions and inflation shocks.

Equities

Core engine of long-run growth via globally diversified stock ETFs.

45%–70%
45% min70% max

Bonds

Blend duration and credit quality instead of reaching for yield.

20%–40%
20% min40% max

Cash

Dry powder for rebalancing and near-term spending needs.

3%–10%
3% min10% max

Real estate

Use a broad REIT fund rather than concentrated property bets.

0%–12%
0% min12% max

Cryptocurrencies

Optional satellite exposure only through diversified or large-cap vehicles.

0%–5%
0% min5% max

Commodities

Inflation diversifier, not a primary return engine.

0%–10%
0% min10% max

Example model allocation

Equities
60%
Bonds
25%
Cash
5%
Real estate
5%
Cryptocurrencies
2%
Commodities
3%

Dynamic

Maximize long-run growth, with guardrails.

Risk profile

Higher volatility / long horizon / strong ability to tolerate drawdowns

Dynamic portfolios remain equity-led, but still reserve a modest stabilizing sleeve so the recommendation stays practical for retail users and does not drift into speculative concentration.

Equities

Prefer total-market and international equity ETFs over thematic concentration.

65%–85%
65% min85% max

Bonds

Keep a ballast sleeve even for aggressive investors.

5%–20%
5% min20% max

Cash

Enough liquidity to support rebalancing and avoid forced selling.

2%–8%
2% min8% max

Real estate

Optional diversifier via listed REITs.

0%–15%
0% min15% max

Cryptocurrencies

Allowed only as a capped satellite sleeve.

0%–8%
0% min8% max

Commodities

Use diversified commodity exposure sparingly.

0%–10%
0% min10% max

Example model allocation

Equities
75%
Bonds
10%
Cash
5%
Real estate
5%
Cryptocurrencies
3%
Commodities
2%

Tactical adjustment rules

Adjust inside the bands when macro conditions change.

Disinflation / slowing growth / falling policy rates

Lean toward the upper half of the bond range, keep commodities near the low end, and favor rebalancing into equities after risk-off selloffs rather than holding excess cash.

Persistent inflation / sticky rates / commodity shock

Keep bond duration intermediate or short, move commodities and real estate toward the upper half of their allowed ranges, and fund the shift from bonds before reducing core equities.

Deep recession risk / credit stress / sharp equity drawdown

Move to the lower half of each profile’s equity range and the upper half of cash and high-quality bond ranges. Do not eliminate equities entirely; keep enough exposure to participate in recovery.

Strong expansion / easing financial conditions / broad market uptrend

Use the upper half of the equity range, keep cash near the low end, and avoid chasing by keeping crypto, real estate, and commodities within their caps.

Guardrails

Constraints that prevent extreme recommendations.

  • Allocations must always total 100% and stay within the published min/max bands for the selected profile.
  • Equities plus bonds plus cash should represent at least 85% of every recommended portfolio to keep advice centered on diversified core holdings.
  • Cryptocurrencies are optional and never required; if included, they must be funded from the growth sleeve rather than added on top of target risk.
  • Commodities and real estate are diversifiers, not substitutes for the core allocation. Combined exposure should generally remain at or below 15% for Prudent, 18% for Balanced, and 20% for Dynamic.
  • Minimum stabilizers: bonds plus cash must be at least 40% for Prudent, 23% for Balanced, and 10% for Dynamic.
  • Maximum alternatives: real estate plus cryptocurrencies plus commodities must not exceed 15% for Prudent, 22% for Balanced, and 25% for Dynamic.
  • No use of leverage, inverse ETFs, single-commodity products as the full commodities sleeve, illiquid funds, or products with opaque payoff structures.
  • Tactical tilts should be incremental. A single rebalance should not move more than 10 percentage points of the portfolio unless the user’s risk profile changes.

Implementation notes

Default instrument types by sleeve.

  • Equities: default to global total market, regional developed markets, and emerging markets ETFs rather than themes or stock picks.
  • Bonds: emphasize high-quality aggregate, Treasury, inflation-linked, or short-duration funds depending on macro backdrop.
  • Cash: use insured cash, money market funds, or ultra-short Treasury funds for liquidity.
  • Real estate: use diversified listed REIT ETFs instead of direct property assumptions.
  • Cryptocurrencies: only through mainstream, liquid vehicles suitable for retail access where available and compliant.
  • Commodities: prefer broad baskets or a gold sleeve; avoid concentrated bets in single commodities.