Shifting Investment Portfolio to a New Approach of the Passive Investors

In an era of growing financial awareness, particularly among younger generations, passive investing has gained significant popularity. This paper examines the creation of investment portfolios tailored to different risk appetites—conservative, moderate, and aggressive. The study analyzes the risk-return profile over ten years using a sample that includes various asset classes such as gold, real estate, equity exchange-traded funds (ETFs), bond ETFs, and Bitcoin (BTC). The findings highlight the superior returns of cryptocurrency and equity-based aggressive portfolios, contrasting these with the stability and lower yields of more conservative investments. The paper identifies a statistically significant correlation between asset classes and proposes strategies for constructing portfolios that balance risk and reward. Additionally, the research explores generational shifts in investment behaviors, emphasizing Generation Z's growing preference for high-risk assets like cryptocurrencies. This paper contributes to the understanding of passive portfolio management and offers insights for investors seeking to optimize returns based on their risk tolerance.