Four important points when building an investment portfolio

Whether you’re trying to grow your wealth or fulfil a specific financial aim, a well-balanced investment portfolio that includes suitable assets has much to offer. In this article, we’ll examine four key steps when constructing a portfolio.

Working out the investment portfolio objective

Investors should always have a clear idea of what their portfolio is for in order to obtain direction on what kind of investments should be made. Once this objective is identified, a portfolio’s effectiveness can be measured to ensure it is working as expected.

Minimising investment turnover

While many investors enjoy constantly buying and selling shares in a short span of time, it’s important to understand that this approach will increase transaction costs. It’s also worth remembering that some investments will take time to pay off.

Avoiding overspending on assets

The greater the price of obtaining a chosen asset is, the more difficult it will be to reach the break-even point. As a result, the lower the asset price, the greater the potential is for profit.

Don’t rely on just one investment

Finally, diversity is essential for any portfolio, as holding a wide range of assets will always lower the risks overall for an investor.

Professional portfolio management services.

If you’re looking for expert guidance with active portfolio management in Chester and Shropshire, our team at Hartey Wealth Management can help. Get in touch today to discuss your investment objectives now and we’ll do our best to help you realise your financial ambitions with an effective portfolio that balances risk and return.


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