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Table 2. Comparison Between the KLCI and Fixed Deposits Source: Normandy Research Note: Fixed Deposits refer to 12-month Commercial Banks Interest Rates Given that both fixed-interest investment and stocks are important elements in your portfolio, how do you determine the right balance? The general model in Table 3 could serve as a quick guide. Other classes of assets have also been infor further diversification which helps to smooth out volatility as growth-oriented options usually involve more risk. The Table should be taken as a general yardstick which may not necessarily apply to all investors. It is always preferable to seek independent financial advice as individual needs vary greatly. Table 3: Breakdown of Assets Profile Asset Allocation (%) 1. You have just started out and do not mind taking some risk. Growth is your top priority. Stocks 60 Fixed Interest/Cash 15 Property 10 International Securities 15 2. You have achieved a comfortable financial base. You want a more balanced portfolio and you still want growth. Stocks 45 Fixed Interest/Cash 30 Property 15 International Securities 10 3. You are retired and you seek security of capital. Income flow is important for you. Stocks 20 Fixed Interest 65 Property 10 International Securities 5