Tips To Help Manage Your Investment Portfolio

Sun, Aug 2, 2015

Investment

Whether you want to invest for your own future or that of your family, protect the wealth that you have generated over a lifetime, or you want to earn a decent income from your investments, it is vital that you accurately and reliably manage your investment portfolio. Most portfolios will include a diverse range of risks and investment types, helping to spread risk, secure wealth, and still attract a decent potential return.

 

Determine Your Risk And Aims

Before you can manage your portfolio efficiently, you need to determine the level of risk you are willing to take on, and also what aims you have for your investments. Low risks typically mean lower potential returns, but higher risks may not be the best option for long term wealth protection. A diverse portfolio will usually include some degree of low and high risk investments, as well as investments that fall somewhere on a scale between low and high risk.

 

Enlist Professional Help

Regardless of how much you have to invest, it can prove a sound move to enlist professional help. Whether you use a financial adviser or an investment manager, they will be able to build a portfolio based on the risk you are willing to subject your wealth to, and the aims that you have for your investments. A company like Sanlam specialises in managing portfolios and investing money for high wealth individuals and not only takes over the work of managing a portfolio, but can help to make more profitable returns.

 

Diversify

Investing everything you have into a single venture, a single stock, or even in a single bank, exposes you to a high degree of risk. If the stock, bank, or business that you invest in goes under, then you could potentially lose everything. By diversifying an investment portfolio, you can avoid or minimise the risk of losing all of your wealth, and the more diverse your portfolio, the more likely you will be able to survive scares and even global recessions.

 

Stick With What You Know

If you are managing your own portfolio, then you need to have in-depth knowledge of the markets that you invest in. Learn everything you can about the markets, read reports, follow the news, and listen to analysts. Use the knowledge you gain to help build an investment strategy that will help you to achieve your short- and long-term goals.

 

Expand Your Horizons

In order to be able to diversify more efficiently and effectively, you are likely to need to expand into new investments. Before you take the plunge, do your homework. Investing blind is one of the surest ways of risking and potentially losing everything that you have worked so hard to build up and earn.

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