Step 3:
Build your portfolio
A well-built portfolio is like a custom suit: it fits your goals, risk tolerance and timeline perfectly. No guesswork, no one-size-fits-all.
Step 3: Build your portfolio
The building blocks of a portfolio
Core asset classes explained
Lowest risk
Cash & equivalents
What it is: Safe, liquid assets.
Risk level: Very low
Returns: Low
Best for: Short-term goals, emergency funds.
Examples:
Term deposits
Cash funds
Low–moderate risk
Bonds
What it is: Loans to governments or corporations (fixed income).
Risk level: Low to moderate
Returns: Moderate
Best for: Medium-term goals, income generation.
Examples:
NZ Government bonds
Corporate bonds
US Treasury bonds
Higher risk
Shares
What it is: Ownership in companies (equities).
Risk level: Moderate to high
Returns: High
Best for: Long-term growth, beating inflation.
Examples:
Index funds (e.g. S&P 500)
Dividend shares
Growth shares (e.g. tech, small caps)
Highest risk
Diversifiers (alternative assets)
What it is: Non-traditional investments.
Risk level: Moderate to very high
Returns: Variable
Best for: Hedging risk or niche goals.
Examples:
Real estate
Commodities
Crypto
Sample portfolios by goal
Illustrative mixes showing how the building blocks change with your goal. General information only, not a recommendation.
Long-term growth
Medium-term stability
Short-term safety
Pro tips for final tweaks
Diversify: Don’t put all your eggs in one basket, even within shares (e.g. mix NZ and international).
Rebalance: Check annually to maintain your target mix (e.g. sell shares if they grow beyond 70%).
Tax efficiency: Use tax-advantaged structures such as PIE funds to bolster your take-home returns.
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