Steps to determine the right mixes of securities for your portfolio

Written By Steps To Faculty Published May 20th, 2010

How to determine the right mix of securities for your portfolio? This question has haunted many people who want to pick good investments. To put a portfolio of securities together is just like a wardrobe where the components are the outfits. In similar fashion, building an investment portfolio is the same pattern. To build the right mix of securities for your portfolio following steps can be followed:

Step 1 Know what your needs are

Try to create a pattern for your portfolio. As a tailor made cloth is different for different individual’s shape and size, a portfolio is also the same and should fit you. Hence, plan your portfolio according to your need, like, investing for retirement, child’s education or expenditure for a vacation at home. Think of your short-term (within a year) and long range (25 years from now) goals are and what it would cost to sustain them. Also, consider inflation when planning at this step.

Step 2 Seek help

Determining the right mix of securities should be decided by you. The financial planner can play an important role in helping you determine the right asset mix. Be sure to get a fee-based only planner as you pay for their advice as you need it.

Step 3 Know what you have

Try to find out what you already have with you, like stocks, mutual funds etc. and its details. To figure out what you actually own, you should get a financial calculator or an investing spreadsheet or account statements for your existing stocks and calculate them.

Step 4 Update regularly

Monitor your investments along with re-balancing your portfolio on your individual investments. Make sure your funds stay in the same in nature and if the style of the fund changes dramatically, the fund may not meet your needs any longer. Therefore, examine your fund’s performance every year.

Step 5 Watch the news

Visit sites like the following for extra help. http://beta.profit.ndtv.com/news/show/five-steps-to-build-a-suitable-portfolio-26217

Remember, portfolios grow over time.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.