For a Balanced Portfolio, the typical document list includes:

 

1. Investment Policy Statement (IPS):

• A formal document that outlines the investment goals, risk tolerance, and the strategic asset allocation between equities, bonds, and other asset classes.

 

2. Portfolio Allocation Plan:

• A detailed breakdown of the asset mix, typically balancing stocks (for growth) and bonds (for income and stability), along with other asset classes like real estate or commodities.

 

3. Performance Reports:

• Regular reports showing the portfolio’s historical performance, highlighting returns, risk metrics, and comparison to benchmarks (e.g., 60/40 stock-bond benchmark).

 

4. Rebalancing Strategy:

• A document outlining the frequency and approach to rebalancing the portfolio to maintain the target asset allocation, usually between stocks and bonds.

 

5. Transaction History:

• Records of all trades made within the portfolio, including buy/sell details, volumes, and dates.

 

6. Risk Management Plan:

• A strategy document detailing how portfolio risk is managed through diversification, asset allocation, and other risk mitigation techniques.

 

7. Income/Dividend Reports:

• Documents showing any income generated from bonds, dividends, or other interest-bearing investments within the portfolio.