How it Works
In one popular approach your deposit is shown as being allocated to six “segments” that will hold investment assets ranging from very conservative to aggressive. Segment One, the most conservative, receives the largest portion of your deposit – 28%. Successive segments receive, 26%, 20%, 13%, 7% and 6% (total 100%). The segments receiving the smallest amount of money are those which hold progressively more aggressive assets. The more aggressive an investment, the more risk it is subject to. These segments will be held for the longest period of time in an attempt to achieve the best possible chance of excellent investing results.