A $49,000 portfolio is more than enough to start building real wealth — if structured wisely. The key lies in striking a careful balance between growth potential and downside protection. The good news? You don’t need to be a market guru to achieve this. With the right mix of investments, even a modest portfolio can weather volatility while steadily growing over time.
Here’s how to build a portfolio that grows with you — without putting your capital at too much risk.
Your $49,000 strategy: Steady growth with smart defence
Capital preservation isn’t about avoiding all risk — it’s about taking calculated risks. It means protecting your purchasing power from inflation, reducing the impact of market downturns, and making sure you’re not forced to sell investments during tough times. To achieve this, you’ll want a diversified portfolio across asset classes, sectors, and geographies.
A long-term horizon (five years or more) gives your investments time to recover from short-term drops and benefit from compounding. Meanwhile, keeping some funds liquid ensures you’re prepared for the unexpected.
Here’s a sample allocation of the $49,000 portfolio:
| Component | % of Portfolio | Amount | Purpose |
| Core Equities | 40% | $19,600 | Long-term growth |
| Fixed Income | 25% | $12,250 | Stability and income |
| Real Assets / REITs | 15% | $7,350 | Inflation hedge + passive income |
| Cash / Guaranteed Investment Certificates (GICs) / high-interest savings account (HISA) | 10% | $4,900 | Liquidity and emergency use |
| Satellite Investments | 10% | $4,900 | Opportunistic growth |
Core holdings that work while you sleep
The core equities and fixed income portion can be handled with one efficient exchange-traded fund (ETF): iShares Core Balanced ETF Portfolio (TSX: XBAL). This all-in-one fund maintains a 60/40 stock-to-bond split, offering both growth and stability in a single trade. With a low management expense ratio (MER) of just 0.20%, it’s cost-effective and well-diversified across regions and asset classes. As of recent data, it yields about 2% annually and has delivered a 10-year average return of 6.2%.
This kind of ETF is perfect for investors who prefer a passive approach and want their money to work in the background while they focus on other things.
Diversify into real assets
For the real assets and real estate investment trust (REIT) allocation, consider a split between BMO Equal Weight REITs ETF and Brookfield Infrastructure Partners. ZRE provides exposure to a basket of Canadian REITs, while BIP.UN offers global infrastructure exposure — think utilities, toll roads, and data centres.
Brookfield Infrastructure Partners is particularly compelling: it offers a 5.2% yield, has 85% of its cash flows under contract or regulation, and targets 5–9% annual distribution growth. With a disciplined strategy of acquiring undervalued assets, improving them, and recycling capital, it’s built for both income and long-term value creation.
Add a dash of opportunity
The satellite portion of the portfolio is your room to play — responsibly. Limit it to 10% to manage risk, but this is where you can invest in high-growth opportunities. ETFs like Vanguard Small-Cap Growth ETF or a handpicked basket of innovative companies with strong fundamentals can fit here.
These investments carry higher volatility, but they can significantly boost returns over time if chosen wisely and held patiently.
The investor takeaway
A well-structured $49,000 portfolio doesn’t need complexity — it needs clarity and discipline. Use ETFs for broad exposure, maintain a core foundation, and allow for some smart experimentation. That’s how you grow your wealth — without losing sleep.
