There are a number of financial agencies to guide the individuals and corporation on how to make a portfolio. The portfolio holds the information of the various assets and financial securities that are held by the investors. The portfolio is nothing but the collection of investments made by the investors.
It’s necessary to conduct the investment analysis by the financial institutions before making a portfolio on investment. The assets that are generally included by the portfolios are – stocks, bonds, futures, options, real estate, production facilities and gold certificates. The financial agencies backed by a team of skilled financial personnel guide both the individuals and corporations on how to make a portfolio.
The agencies generally explain the investors the pros and cons of the investment portfolios. While making a portfolio, it is necessary to take care of some of the points.
The investment portfolio needs to spread the risk of the investment evenly. An investment portfolio also needs to be balanced with different types of investments with varying levels of risks involved. The asset allocation is the first step in making a diversified investment portfolio.
Asset allocation involves taking the decision of allocation of the assets in the broad investment classes like stocks, bonds and cash equivalents.
The investment portfolio also needs to have different types of investments with various levels of volatility of risks. Only those investment schemes should be selected that match the risk tolerance factor of the individuals or the companies. There are a number of investment professionals and advisors available to give necessary guidance over the making of an investment portfolio. The investment advisor may be stockbrokers, professional money managers or financial planners. The stockbrokers generally work for the brokerage houses and having been earned immense experience in the financial market can help the individuals to make an investment portfolio. The professional money managers can make the investment portfolio depending on the requirement and the investment objectives of the clients. The financial planners help the individuals or the corporations to set the financial goal and can help to construct the investment portfolio accordingly.
Last Updated on : 8th July 2013