A right stock allocation is important to meet one’s financial goals. These investor-specific factors to building a solid stock portfolio are quite helpful.
Stock portfolio can have different meaning to different people. It is perhaps due to different factors that can directly or indirectly affect stock allocation in a given portfolio. These factors need to be considered & assessed when building a stock portfolio.
According to a post published in Tribune India, building up a well-maintained portfolio is important to any investor’s success to create wealth.
Portfolio management is a valuable & tricky task performed by an investor. It will ensure you to build a profitable portfolio to meet your future needs. It will also help you to achieve peace of mind.
You just need to focus on what you can control instead of worrying about what you can’t. Here are 10 investor-specific factors affecting stock allocation for a profitable portfolio:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.
(1) Financial Goals Of An Individual
It is one of the most significant investor-specific factors to building a solid stock portfolio. Generating a stock portfolio is not as simple as buying stocks from stock markets.It is perhaps a tricky task in stock markets.
Your stock allocation should match your financial goals. You have to know whether your investment objective is to accumulate wealth or to hold on what you already own. You stock selection strategy is likely to get affected on this basis.
For example, if you are many years away from financial goals, you should ideally allocate maximum amount to securities & less towards fixed income instruments.
However, if you are nearer (3 years) to your financial goals, you must shift more money to fixed income instruments rather than equities.
Although, there is no guarantee that every stock you selected will generate money but you are likely to get benefited from them. You just need to save & invest money in stocks that meet your financial goals.
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