example of an investment portfolio
Thus, the investment portfolio is a number of different securities and other miscellaneous assets, which are assembled together (in the investment portfolio) to achieve the goal or goals which are put before an investor. Be this portfolio may be made of gold and other metals, and property, of various securities and other assets of what You yourself want to see in it. The very concept of such portfolio sometimes even compare as a synonym for diversification.
It is necessary to remember, that all investment portfolios practically are not repeated and are built depending on the investor and subject to its objectives, the tastes and demands. But the General tendency is visible: the younger the investor (the person who started to form its investment portfolio), the more this portfolio is speculative (risky), and the older a person is, the more its portfolio is conservative (less risky). Although every rule has its exceptions, so it is here. In the history of the securities market there were many stories, when young people have formed these portfolios are very conservative, and on the contrary, the very elderly people have formed a very risky (speculative) investment portfolio. So, once again, it all depends on the person and his purposes, that he was trying to reach thanks to the investment.
Now I will give an example of the investment portfolio. You are a novice investor, who(-Oh) 25 years. You have a goal to buy a house and a car in ten years. Also it is known, that now you have 5 000 us dollars for investment and in a month You can invest $ 500 minimum (it is necessary to consider, that this number must be minimal, because the money will every month to seek and to invest). Next, You calculate that, if Your investment portfolio will consist of 20% (percentage of the total amount of investments) of the programme of obligatory insurance of the life (a very conservative investments yielding approximately 2-3%), 20% will consist of shares of big companies, the shares of real estate, while 60% will consist of speculative species investments, which give 100-300% of income (the shares of the IPO, for example), then You will reach it. Data of interest and the types of assets in it and form the investment portfolio.
Now let us consider the types of investment portfolios:
Aggressive portfolio - this portfolio of investments, which is in most of the assets, which is very risky, but also very profitable (yield may reach 300% per annum). But it is necessary to be ready that the funds that will be invested in the investment can bring even losses.
Conservative portfolio - this portfolio, which is formed in order to reduce to a minimum the risks of investments, but with a decent income. If you want Your portfolio became thus, it is necessary to increase the share of bonds and reduce the percentage of shares (aggressive).
And may be you can invest and without formation of the investment portfolio, and just go and buy only one of the types of assets? Of course you can, but You are ready to lose all of your investment? Because the portfolio is formed also with the aim of reducing risks in the loss of one type of asset the others still remain. This is the main value of the investment portfolio.
