E Creating A Well Diversified Portfolio

Creating a portfolio takes a bit of time and expertise. Depending on the type of portfolio you’re looking for, whether your bullish on the markets, looking to preserve or grow your assets, or you have a certain financial goal you’re trying to achieve, will be important when trying to create the right portfolio for you. Finding the right mix of assets depends a lot upon the state of the markets you’re looking to invest in, your appetite for risk, and your ability to not touch the capital you’re investing. Please keep in mind, this is not investment advice, and if you should seek any, please find a licensed or registered financial professional.

The financial agenda or goal of your portfolio is where we would like to start. Depending on your life circumstances, where you are in life, and what you want to achieve financially, are important factors when it comes to creating a portfolio. If you’re at a point, where you’re looking to conserve and safeguard the assets you have, creating a low-risk portfolio is a good idea. This way, you’re able to know your assets are protected, have limited downside, and hopefully a predictable stream of income as well. The types of assets you choose, have a lot to do with the type of risk you’re able to bear, and the financial plans you have for using the assets you’re investing.

If you’re looking to generate wealth or grow the capital you’re investing, odds are your portfolio is going to be taking a bit of a different approach. A lot of investing and portfolio construction is based on risk versus reward. If you want to have more of a reward, meaning to grow your capital, it’s most likely going to mean taking on more risk. Whether that means new industries, early-stage companies, or higher risk investments, the more risk you bear, the more reward that’s possible.

Within your portfolio, you also have to determine the types of weights you want to give to certain investments. What we mean by that is, diving deeper into your portfolio allocation. The more you like a certain investment or believe in a certain investment to match your goals or your agenda, the more weight it will probably get. Meaning the more capital or more investment you’re going to make in it.

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