Model Stock Portfolio: Long Term Equity Investors

 Model Stock Portfolio: Long Term Equity Investors

 Generally, we can find three types of investors based on Investing Strategy in the Equity Market. Investing Strategy is here nothing but as a Diversification of Stocks. There is a Conservative Investor, Moderate and Aggressive Investors. 

According to Equity investment theory, these three types of investor varies to one's risk nature. Although the investment is usually made in the form of Asset Allocation, the Diversification based on Sectors is required in the Equity Investing.  

Diversification is very helpful to reduce the risk involved when investing directly in the Stocks, but not in the equity oriented funds. We see the diversified investment approach as the type of investor. In doing so we can balance the volatility that occur in the short term to long run.

This strategy allows the investor to make better returns in the long term without incurring significant losses. We can have a Model Stock Portfolio for the three types of Investor,


 

 

Make sure you have a maximum of 10-20 Stocks in your Portfolio. By these principles, you can easily manage the stocks that you have invested in. Additionally, you can also the track the Fundamental Parameters that occur in the stocks invested. 

In the beginning of your investment journey, even if you have a lot of stocks, it is better to have a Concentrated Portfolio in the long run.

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