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.

(6) Sources Of Income

It is one of the most unbeatable investor-specific factors to building a solid stock portfolio. Every individual is known to have different range of earning potential.

Several individuals are known to have stable source of good income. These types of individuals are often working as an employee to a government organization or as a private employee to a large organization.

These individuals are likely to receive an appraisal in earnings from time-to-time. It is the reason why they can invest more in risky stocks along with stable investment options.

On the other hand, some individuals are found to have very unstable source of income. Their income can vary to a great extent. These types of individuals are usually running their own small scaled businesses.

They are likely to invest less in risky stocks. But, they will prefer to invest more in stable stocks for better returns. Thus, you need to allocate funds by keeping in mind future income growth potential.

[Read Also: 11 Key Steps To Build A Well-Balanced Stock Portfolio]

(7) Personalized Expenses

It is one of the most common investor-specific factors to building a solid stock portfolio. Everyone is having his/her own personal expenses in the life.

Some prefer to spend their income on holidays while others on luxurious facilities. Those investors who are found to have other priorities to spend money may prefer to invest less in stock markets. Sometimes, they may even completely avoid stock investment.

On the other hand, individuals with less expenses are likely to save more money. Therefore, these types of investors can invest freely in moderate to risky stocks quite easily.

Thus, investor’s expense are likely to affect overall stock portfolio.

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