Building a portfolio is not so different from picking a World Cup squad – all investors need are the right mix of roles, a clear game plan and the discipline not to stack the team with strikers, according to Charles Stanley Direct chief investment analyst Rob Morgan.
The 2026 FIFA World Cup offers a practical framework for thinking about portfolio construction as the tournament's expanded format, featuring 48 teams rather than the previous 32, makes consistency more critical than ever. A single heavy defeat can end a team's campaign early and Morgan argued the same logic applies to investing: catastrophic losses are the ones portfolios cannot recover from.
"A well-rounded team, which has the right balance of players of diverse types, is likely to provide a better chance of consistent performance and advancement through the rounds," he said.
"Likewise, a balanced investment portfolio comprised of a variety of assets with different attributes, some with more risk and others with less, is likely to provide a good outcome over the longer term while dampening the market highs and lows."
The manager's job
Portfolio construction, Morgan said, is only half the task. The other half is managing it actively as conditions change.
"As the manager of your own portfolio the selection of appropriate assets prepares you for the match ahead, but you'll also need to manage the game as it unfolds to capitalise on opportunities and avoid vulnerabilities," he said.
Rebalancing keeps the portfolio in its intended shape, just as footballers need the discipline to hold their formation. Tactical switches matter too, as "not all portfolio players are worth keeping for the 90 minutes and the tactical use of substitutes can add impetus to the performance at the right moment."
The overall goal is always "a well-judged compromise between focus and diversification".
Central midfield: Global equities
Midfielders are the engine of any team, involved in both attack and defence. Morgan equated this role to broad global equity investments, which provide the long-term return engine of most portfolios in a relatively simple manner.
Within that, he drew a further distinction. A defensive midfielder corresponds to a global equity income fund, investing in stable, dividend-paying companies that deliver more dependable returns. An attacking midfielder represents a more growth-oriented strategy, seeking to push returns higher when conditions allow.
"Their utility is rather like the role of broad global equity investments, providing the exposure to share markets that helps propel long-term returns with little fuss," Morgan said.
Defence: Bonds
Defenders do not need to be the most skilful players on the pitch but they do need to be reliable. Morgan said bonds play the same anchoring role in a portfolio.
"Often it is safer and more predictable to lend to a business through bonds than be a part owner through shares," he explained. "Although returns from bonds in the form of interest payments can be unexciting, they can provide steady, incremental returns and a relative anchor compared with riskier share-based investments."
Bonds also carry a potential upside that is easy to overlook. "Defenders can occasionally pop up with goals for the team too," Morgan added. "A bullet header from a corner can change the game when the strikers aren't firing."
If inflation falls faster than expected and interest rates stay lower, bonds could deliver stronger returns than their cautious reputation suggests.
Striker: Specialist and thematic holdings
A team comprised entirely of strikers would fail quickly. Morgan said the same principle applies to portfolios, warning investors to "avoid fielding eleven Harry Kanes on the pitch".
Higher-risk, specialist investments should be present, but only in limited measure. "There should only be a modicum of higher risk, specialist investments in a portfolio," he said.
For longer-term investors comfortable with the risks, exposure to structural growth themes such as technology or emerging healthcare could drive meaningful returns.
"Well-timed individual flair in and around the box can make all the difference," Morgan added, but only when those positions are proportionate to the rest of the portfolio.
Goalkeeper: Cash
Every successful team needs a reliable goalkeeper and, likewise, every financial plan needs a cash reserve. Morgan said: "You never know what is around the corner and even in the most secure situations there could be a need to dip into cash reserves."
He recommended keeping enough to cover essential expenses for three to six months, accounting for costs such as energy, mortgage or rent, travel and food, although the right amount varies by individual. "You might need more if it's hard getting work in your area of expertise, or if you have potentially costly family or other commitments," he noted.
The critical point is accessibility: "You can earn a decent interest on this balance in a savings account by shopping around, but don't be tempted by a fixed-term interest rate or accounts with long notice periods for this purpose. Money locked away for a year is no good when you need cash quickly."