What exactly is a ‘balanced’ ASX share portfolio?

One of the most overused words in the world of ASX share market investing is surely ‘balanced’. Every financial advisor under the sun will tell you the benefits of having a ‘balanced’ or ‘diversified’ portfolio.

It’s even what most superannuation funds usually call their most popular portfolio options. And yet it’s one of the topics that many investors struggle with the most. Perhaps even inadvertently.

So what does this fabled concept really mean?

When people talk about a ‘balanced’ portfolio or a ‘diversified’ portfolio, they are essentially talking about the same thing. ‘Balanced’ usually refers to a share portfolio’s ability to weather adverse events, either in a specific company, a specific…