How To Start an Investment Portfolio

An Investment portfolio is a group of investments held by an investment firm, hedge fund, or any individual. It is collection of investments with which the investor intends to make profit while protecting the original principal amount. These investments are rated on different risk or reward categories. For example you may choose from low risk, low yield, high yield, high risk categories.

A portfolio is created in view of the individual’s tolerance for risk; you may create a high yield portfolio but it will have greater risks or if you want to keep it safe you can always create a low risk low profit portfolio.

Creating an investment portfolio is a significant step towards earning a reasonable amount from your basic investments. Never say no to an investment opportunity, if you keep on waiting for the right sum of money to join the investors club, you may go on waiting forever.

Instructions

  • 1

    First of all, decide on how large a sum of money you can spare to start your investment portfolio. If you do not have the required amount at present, start saving money in a savings account or some other interest based earning source that will separate your investment money from your day to day expenditures.

    Set reasonable goals for yourself and create a timeline for the savings plan. There must be a future date that the portfolio must look forward to; may be your retirement age.

    Or, if you are saving money to buy a house or a car; the timeline will help you identify the correct amounts required for those purchases.

    Image courtesy: mcxcapitalfinance.com

  • 2

    Decide on the type of the assets in which you want to invest in. The market offers many types of investment options; stocks, bonds, mutual funds, cash, Forex reserves, treasury notes, gold, commodities to name a few.

    Do research on every one of them and then decide which of these assets are most suitable to your investment needs. For example Forex reserves offers big margins of profit but there is a strong risk factor associated with them, so do your homework well before continuing forward.

    Image courtesy: atrc.net.pk

  • 3

    Start making the investments. Bring out all your saved amounts in one account and start buying the assets that you identified in the last step. There is no need to make all investments at once. Start carefully, and after getting reasonable results start building up your complete investment portfolio.

Leave a Reply

Your email address will not be published. Required fields are marked *


9 − = two