What is an Investment Portfolio

An investment portfolio is a series of different investments. An investor will place bets in order to make an income, or a profit. This he or she will do, whilst still trying to hold onto the original [‘invested’ amount of money].  How an investor chooses which investment portfolios to go for is done on the basis of how low, or big, the risk is {risk reward]. This is also known as ‘risk reward combinations’ and, can range from ‘low-risk’ ‘low yield’ [which is gilt edged] to ‘high risk’ ‘high yield’ [junk bonds].

These are different to each other in that some are steady but fixed profits – or variable, but with a potential to grow. If you want to learn how to create your own Investment Portfolio, then please read on. What every investor is looking, for – and wants – is a portfolio that will perform at the highest level.

For this, certain conditions have to be decided upon. For example you have to choose which events, or items, you want to save for. It could be a new car, your own education, your home, or your children’s educational future? In fact, you can choose anything you wish -however, once you have decided, then the next stage follows.

Decide for example, when you want to invest in your child’s education, or when you want to call it a day and retire from work. Once a decision has been made, this will then give you an idea of just how much of a percentage return you will need on your original investment. Now you must come to a decision on how much money you can reasonably afford to invest. At this point, you must always remember to invest what you can – as you can always change the investment [the amount] at a later time.

As with all investments there is risk involved. Some is higher and more risky than others. It is up to you to decide how much of a risk you are willing to take. There are so many investments out there that will give you a high return for the amount you put on. Likewise, there are other investments that return lower. The low-risk investments are obviously the ones that hold less risk than their counterparts.

Once you have made all of your decisions [such as how much you are willing to invest, the returns you want, when you want the money, and the risk – how much or how little – you are willing to take], then you can set about in creating your investment portfolio. If you need advice, a stockbroker or an investment counsellor will help you. Explain to the advisers what you are looking for and, what you want to achieve from your investment/s. They will then offer you advice on how best to allocate your money.

Make it your duty to check [revaluate] your money you invest annually and never be negligent with your investments. Study each investment you have placed, very carefully, to see how each is performing. If you are thinking about investing and creating your own Investment Portfolio, keep in mind that tax-free bond funds, will offer you less of a risk, but will produce low returns.

Another thing to keep in mind is the fact that if you have less than $25.000, then consider mutual funds, rather than individual stocks. What this will do is diversify and lower the risks you will take when you place your money down. However, the choice is yours. As in all investments there is always risks – however small or big – that one must take in order to male a profit. Click on the link below, to give you more of an idea about investment portfolios.

Building Investment Portfolios