Investment Pyramid Law and Legal Definition

Investment pyramid is an economic model for construction of an investment portfolio. The model takes into account the age of the investor and then repositions the percentage invested in particular assets according to changes in goals as the investor grows older. The base of the pyramid consists of cash which is followed by income securities. After that, comes growth and income securities, growth securities, and last of all, speculative securities. Investments become increasingly risky as an investor progresses up the pyramid.