Formation of an investment portfolio is an important task for every investor and a decisive condition for future success in the background market.
An investment portfolio is a set of financial instruments owned by an investor aimed at preserving and increasing cash. Such a set may consist of stocks, bonds, mutual funds and other instruments. They differ not only in basic characteristics, but also in the level of risk and profitability. Generally, the higher the risk, the higher the potential return. For example, investments in shares of young companies are most at risk. Government bonds (OFZ) are considered the lowest risk.
We’ve already covered the key points to look out for when building a portfolio, but that’s not enough. In order to consciously choose investment instruments and achieve the necessary results, it is important to know a few more rules:
Don’t spend all your money buying stocks. For novice investors, this approach can be very risky, since the value of shares is highly dependent on changes in the economy and can change dramatically.
Don’t trust everything they say. Shares that are talked about everywhere and everywhere can be overvalued, that is, they sell well above their real value. We advise you to independently study the financial indicators of the company: the dynamics of revenue and net profit, the amount of funds in the company’s account, the presence of debts and growth factors.
Don’t speculate. Speculation involves the receipt of income from changes in the value of an asset in the short term. For example, you bought a share for 10 rubles and expect that in a couple of days its price will rise to 12 rubles. However, in practice, the security may “sink” and then you will have to close the deal with a loss or wait an indefinite amount of time before it recovers and possible growth. Speculation requires a lot of effort, time and expertise and is suitable for more experienced investors.
Read analysts and trusted sources of information, stay tuned. You can trust the opinion of experienced investors, find up-to-date ideas and a selection of promising securities on the broker’s website. So, based on forecasts and various reviews, you can make a decision about investing in a particular asset. However, it is important to remember that only you are responsible for your decision and no one can guarantee you 100% future results.
Define your risk profile before trading. This is necessary in order to understand which investment instruments are right for you. The risk profile can be, for example, conservative, rational or aggressive. You can go through risk profiling with a broker.
What do you need to remember?
Investments are not a lottery, and income from them is not luck, but the result of meticulous work. Novice investors should build a portfolio of stable and liquid securities from different sectors of the economy. When choosing assets, it is important to make informed decisions, because all responsibility for possible losses lies solely with you. You can draw up an investment portfolio yourself, relying, for example, on the opinions of analysts and information from reliable sources, or turn to a professional financial advisor for help.