Morgan Stanley recommends 'conservative' crypto allocation for some portfolios

The financial services company recommended modest crypto allocations for balanced risk and high-growth portfolios with periodic rebalancing.

Financial services giant Morgan Stanley issued guidelines for crypto allocations in multi-asset portfolios, recommending a “conservative” approach in an October Global Investment Committee (GIC) report to investment advisors.

Analysts at Morgan Stanley recommended up to a 4% allocation for cryptocurrencies in “Opportunistic Growth” portfolios, which are structured for higher risks and higher returns. 

The analysts also recommended up to a 2% allocation for “Balanced Growth” portfolios featuring a more moderate risk profile. However, the report recommended a 0% allocation for portfolios oriented toward wealth preservation and income. The authors wrote:

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