Cash and equivalents are money you can reach quickly without much risk to its value. It grows little, but it is there when you need it — useful for short-term needs and peace of mind.
Its role in a portfolio
Cash is about readiness, not growth. A slice of it means a surprise expense never forces you to sell other assets at a bad moment.
Which profiles lean into it
Preservation profiles hold the most cash; growth and aggressive profiles keep only a thin layer. An emergency fund usually comes before any portfolio at all.
Key terms: Inflation · Interest Rate
Curious where you fit?
Answer a few questions and discover your investor archetype — with an illustrative example portfolio by asset class. Educational, not advice.