Irwin Consulting Solutions in Singapore and Tokyo, Japan Irwin Consulting Solutions in Singapore Stocks
Irwin Consulting Solutions in Singapore and Tokyo, Japan
Stocks
Investing in Stocks to help you achieve your Financial Objectives
In terms of stock investing, understanding your financial objective is critical. That, together with your
investment time targets and your risk capacity when investing in stocks, will aid you in determining how
your stock investments should perform with the rest of your financial portfolio.
When to consider Investing in Stocks
Stock investing can enhance your financial portfolio by allowing you to attain growth, profit from
dividends or achieve both. Nevertheless, the worth of any stock you buy in can vary, and when you sell
your stock, may be more or less than what you paid at the start. When choosing stocks to buy in, you
should cautiously reflect on the risks of investing in stock and design an assorted asset allocation strategy
that suits your objectives, investment time target and risk capacity.
Diversifying your Stocks
Having a varied stock portfolio helps to offset the risk your investments are subjected to. The objective is
to widen the range of your stock investments among various sectors and incorporate various investment
characteristics so that when a certain stock or sector does poorly, the performance of your stocks in other
sectors may aid in offsetting the changes in the overall worth of your stock portfolio.
Some Basic Guidelines you can utilize when selecting a Variety of Stocks for your Portfolio
are:
Invest in about 20 to 30 stocks in a minimum of six to eight sectors with various investment
characteristics.
Limit to only 25% of the overall worth of your stock portfolio should be in any particular sector.
Limit to 15% of the overall worth of your stock portfolio should be in any particular stock.
You need to invest at least about 3% to 4% of the overall worth of your stock portfolio in every
stock.
Your investment counselor can assist you in designing a mixed financial plan that fits your
circumstances and your financial objectives.