Infographic: 4 Key Essentials on Building A Successful Portfolio

Photo by from Pexels

While you can’t avoid volatility in the markets, you can try to build a portfolio that could reduce the worry. Yes, some of these items on the checklist may sound simplistic but it is essential to emphasise as many new investors tend to get caught up and ignore the rules. 

Be Clear of Your Purpose

Start with the end in mind. Whether it’s to start a new business, saving up for your children’s education, or preparing for retirement; knowing where you’re headed helps when to keep your mind on track when it comes to making decisions. 

Understand Your Appetite for Risk

While you might understand your spending habits, many still do not hold a realistic expectation of your goals in relation to your risk appetite. Find out what you can afford to lose, work out your timeline and goals, and figure out your personal risk appetite. Alternatively, a good way to manage risk is to spread your money across a range of different investment types.

Published_key essentials on building the perfect portfolio

Knowing Your Plan And Giving It Time

Most great portfolios are built on a strong fundamental understanding of each product. You may want to hold certain investments for short-term goals, but it is important to understand the factors affecting your long term plans. 

Stay Focused

There are various factors that might make you doubt your investment decisions along the way. However, stay focused on your objective (which is why it’s important to be clear on your purpose); or contact a financial advisor when in doubt.

Written by

Cheryl Toh

Last updated on

October 11th 2019, 10:34 am

Skip the daily news.
Subscribe to our Weekly newsletter for relevant market news and global trends.