What is the 5% rule of investing?
The 5% rule of investing refers to a strategy where investors allocate a small portion, typically 5% of their portfolio, to high-risk, high-reward investments. This approach aims to balance risk and reward, allowing for potential large gains while limiting the overall impact of losses on the portfolio.
What is the 5% rule in investing?
The 5% rule in investing refers to a strategy where investors allocate a specific portion, typically 5% of their investment portfolio, to a particular asset class or investment opportunity. This approach helps to diversify the portfolio and manage risk by ensuring that no single investment dominates the overall portfolio performance.