How to create a strong portfolio

 How to create a strong portfolio

How to create a strong portfolio, A diversified portfolio a strong. It means you should go for a diversified portfolio. You should add different sector stocks in the portfolio then you will have more chance to earn  at safer side. 

Types of portfolio

So many types of portfolio and strategies can be there as there are money managers and investors. You can have multiple portfolio according to the investment senario, need and strategy..


Hybrid portfolio

Aggressive, equities focused portfolio

Defensive, equities focused portfolio

Income focused, equities portfolio

Speculative, equities focused portfolio

Portfolio investment

Before creating a portfolio you should know about the terms mentioned above. Now let's discuss in details about it.

Hybrid portfolio : 

The hybrid portfolio is the deversified portfolio across asset classes. A hybrid portfolio requires diversification in stocks as well as bonds, commodities, real state etc. This kind of portfolio involves proportion of stocks , bonds and alternative investments.

The benefit of hybrid portfolio is reducing risk due to balanced investment between the equity and debt. It has potential for capital appreciation and regular income. It is very suitable for those investors who has moderate risk tolerance.

Aggressive, equities focused portfolio :

This type of portfolio would assume great risk for good returns. This kind of portfolio carries higher risk as well as potential to give higher returns. Due to volatile in nature high risk tolerance required in this type of portfolio.

The benefit of aggressive equity focused portfolio is the higher return potential in comparision.

Defensive, equities focused portfolio :

This kind of portfolio includes the defensive stocks, it includes the categories like example : food and beverages, household products, these stocks are present the companies which sell or produce goods and services which are always in demand.

This kind of portfolio aims to limit losses in down side market. It is good for those who want to limit thrie risk.

Income focused, equities portfolio :

This kind of portfolio includes dividend paying stocks and other types of distributions to the stock holders. This should generate positive cash flow.

The benefit of this type of portfolio is earning additional income out of assets. 


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