Investing term

What is Core-and-satellite?

A portfolio structure where most of your money sits in a 'core' diversified base, with smaller 'satellite' bets around the edges.

Core-and-satellite is a portfolio structure where the bulk of your money sits in a diversified, low-cost "core" (usually index funds), while small "satellite" positions take active bets around the edges. It lets you scratch the stock-picking itch without betting the farm — the core keeps you anchored to market returns while satellites add a little spice.

For example

85% in broad index funds as the core, plus three 5% satellite picks you believe in — most of your money stays safe and diversified.

Core-and-satellite is taught hands-on in Stage 10 — Building Your First Portfolio.

See the lesson →

Related terms

AllocationHow your portfolio is split across asset classes (stocks, bonds, cash, alternatives).Balanced fundA single fund that holds both stocks and bonds at a fixed ratio, automatically rebalanced.DriftThe gradual shift in your portfolio's mix as some assets grow faster than others.HorizonHow long until you need the money.
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