investment portfolioThere are many ways to construct an investment portfolio, including using an investment adviser or using pre-made models from investment banks. As what's in the portfolio, or at least should be, is dependent on individual investment conditions, you should get financial planning advice from investment professionals, such as financial and investment advisers. If you already know your investment goals, many investment companies funds that reflect different types of investment risk profiles that may or may not be suitable for you. Investment funds may, for example, have part of their portfolio on money market instruments, stocks, bonds, and real estate. Now, you could mimic such a portfolio in two ways: by buying identical amounts of each financial instrument or by buying shares in the fund. As buying into a fund is easier and the transaction fees are much lower, many buy into these funds. Constructing an Investment PortfolioEven though there are very many types of investment funds available that reflect different types of investment goals, some opt to build their own portfolios, which reflect their own investment goals better. For example, some buy into several investment funds, instead of purchasing just one fund. Some also like to buy into stock and bond market funds from investment brokers, but keep part of their assets separate, for, for example, investing directly into real estate opportunities. To find out how different types of investments contribute into your overall investment risk profile, you can look into the research report from investment banks, such as Goldman Sachs, that analyze the different scenarios for each investment type in their national and global example portfolios. Many of these reports are available directly to the public on the banks' web sites. |