10 Investor-Specific Factors To Building A Solid Stock Portfolio

Investor-Specific Factors To Building A Solid Stock Portfolio. Stock investor feeling happy & excited after looking performance of his stock portfolio.

(4) Propensity To Read Market News & Keeping Up-To-Date

It is one of the most popular investor-specific factors to building a solid stock portfolio. No stock is found to be stable for a lifelong process. It is because even a fundamentally strong stock can become risky with time due to business difficulties.

Investors with a propensity to read market news to remain updated never lags behind. They are always in a position to analyze their stock portfolio in a better way at any time.

If they notice any serious drawback in the working of a company then perhaps they can quickly cut their positions with minimum losses.

Similarly, those who are always updated with stock moves can book profit when their targets are achieved. They never miss out any opportunity to book profits without any delay.

Thus, investors who don’t have enough time to research various companies should better invest through mutual funds.

[Read Also: 18 Basic Rules To Build A Solid And Profitable Stock Portfolio]

(5) Country Of Residence & Investment

It is one of the most important investor-specific factors affecting stock allocation for a profitable portfolio. Stock investment is not something limited to a country. Today, investors can invest in domestic stock markets as well as foreign stock markets.

Generally, growth opportunities are found to be more in emerging economies or developing countries rather than developed countries.

If US economy is doing well in these years then who knows which economy will going to outperform in the next decade.

According to a post published in CNN, new investors should park about a third of their portfolio in foreign stocks.

For example, US investors can invest some of their funds in companies working or listed outside US. Some of the preferred countries for stock investment could be India, China, Singapore, Hong Kong, etc.

Similarly, Indian investors can invest in foreign stock markets such as US, UK, Australia, etc.

On the other hand, investors living in countries such as Poland, Peru, etc. have limited opportunities in domestic markets. They should better seek other countries for major investments.

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