Investing term

What is Lazy portfolio?

A pre-defined simple portfolio recipe that requires no ongoing decision-making.

A lazy portfolio is a simple, pre-defined recipe of a few broad index funds that needs almost no ongoing decisions — you set it up, contribute regularly, and rebalance occasionally. Its strength is behavioral: by removing constant choices, it removes the chances to make costly mistakes. For most people, simple and consistent beats clever and fiddly.

For example

A classic lazy portfolio is just a total-stock fund, a total-international fund, and a bond fund in fixed proportions — three funds, done.

Lazy portfolio is taught hands-on in Stage 10 — Building Your First Portfolio.

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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.Core-and-satelliteA portfolio structure where most of your money sits in a 'core' diversified base, with smaller 'satellite' bets around the edges.DriftThe gradual shift in your portfolio's mix as some assets grow faster than others.
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