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Misconceptions Around the “60/40 Asset Allocation Strategy”


WEBWIRE

According to the “Helping Meet Investor Challenges Study” released by Dreyfus, only 18% of individual investors were correct in thinking that the “60/40 Asset Allocation Strategy” meant 60% of their investment portfolio in stocks, 40% in bonds.

The data illustrated how investors widely misunderstood the rule, and how many investors and advisors no longer supported it. 

When given the definition of the 60/40 strategy, only half (54%) of all investors agree that “a 60% stocks/40% bonds portfolio is the ideal asset allocation.” Younger investors are even more convinced it’s time to move away from the 60/40 approach, as 70% said it is old-fashioned and doesn’t make sense in today’s investing environment of uneven economic growth, low rates globally and the expectation of rising U.S. rates and low volatility. 

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Established in 1951, Dreyfus is among the pioneers of U.S. mutual fund investing with $300 billion in assets under management (as of March 31, 2017). As part of BNY Mellon Investment Management, Dreyfus enables U.S. retail investors to access mutual funds through BNY Mellon’s globally diversified investment boutiques, with investment solutions spanning global, international and domestic equity, fixed income, alternatives, retirement and cash investment strategies

 


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