Once an individual is ready to start investing, it’s important for them to consider building their own portfolio. A portfolio is a group of investments that an investor has specifically chosen.
A portfolio can include a wide array of investment types, including stocks, bonds, cash investments or real estate, etc. The aim of a portfolio is to diversify investments and reduce risk.
The portfolio that an investor holds often reflects their risk tolerance. A more risk-taking investor may hold less investments (which results in less diversification) or they may simply hold riskier investments.
Often investors choose to build a specific type of portfolio. This could be based on a particular industry, investment type or country. For instance, an investor may specialize in American Technology stocks.
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