Investment Portfolio; The What and How Part 2

 In the previous blog article, we talked about what an investment portfolio is, and explained the different types of investment portfolios that exist. If you haven’t read this, you can catch up (here).
If you have read that, it is time to move on to our next discussion; how to build an investment portfolio. Keep in mind that building an investment portfolio is not that difficult, you only need the right knowledge and guidance, and soon, you’ll have a worthwhile investment portfolio.
So, how do you start building an investment portfolio?

1. Identify Your Goal

What financial goals do you intend to meet while investing in assets? Identifying what your goals are will determine the kind of investment portfolio you choose to build.
If you’re gunning for high returns within a specific time, then you know what kind of investment portfolio you will be building. If you plan to invest for retirement, it’s also clear what your investment portfolio will look like. So, take a moment to assess your goals first.

2. Identify Where Your Risk Tolerance Level is at

If you are highly risk-averse, then this means that you have a low-risk appetite and promissory assets are a no-no for you. You will have to invest your money only in safe assets like real estate. However, if you have a high-risk appetite, then you can go for assets with high risk and a possibility of high returns, like cryptocurrency or IPOs.

3. Assess Your Investment Skills

Assessing your investment skills will help you decide if you can go along building your investment portfolio yourself or if you will need support from a financial adviser.
How much knowledge do you have about investments? Do you have the time to research about assets before investing? Can you accurately monitor investments? If you are confident in your capabilities, then you will not need the help of a financial adviser. But if not, then get one.

4. Decide How Much Help You Will Get

After assessing your investing skills, the next step is to decide how much help you’re going for. If your investing skills are top-notch, then of course, you will need little help from a financial adviser. If not, then you can either decide to go for a robo-advisor, outsource your work or just seek guidance. We’re here to help your financial journey if you need guidance.

5. Choose Assets and Allocations

Depending on your risk appetite, goals and investment portfolio type, start to work on choosing assets you plan to invest in. Then decide how much money will go into each asset you have chosen. You will also need to plan your asset diversification and balancing. You might need professional help for this, and we’re eager to help.
Once you have all of these settled, you can go ahead to create your investment account and start investing. The major keys you need to be a successful investor are goal setting, risk appetite assessment and talking to a financial adviser.
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