How to make a profitable investment portfolio
Many people dream of getting passive income and living for their own pleasure. And many are attracted by investment activity as a way to get this very income. But most novice investors, especially self-taught ones, stop their attempts to invest immediately after, after a few months, the stock price in their portfolio has not changed or, even worse, has begun to decline.In order to avoid such a development of events, you need to make a correct, profitable investment portfolio. Investing is always about risks. But they can be different. At the moment when a company puts its shares up for sale, it must indicate the ratio of risk and return. And as a rule, with high profitability, the risks will also be high. Accordingly, at low, the risks are reduced.So, there are three types of investment risk: high, medium and low. How to make up your investment portfolio so that all these risks balance with each other. It is not by chance that it is said about the balance of risks. The portfolio should not consist, for example, only of instruments with low risk or only with high risk. All three types of risk and profitability must be present in the investment portfolio in order for it to generate income.To begin with, it is worth understanding how investment risks differ. Low risks are when the degree of decline or growth of a stock does not exceed 2%. That is, with a probability of 2%, the stock may fall in price. With this degree of risk, the income will be no more than 5% per year. The average degree of risk is 5-10%. The income will be up to 15% per annum. And finally, a high degree of risk corresponds to everything above 15%. But the yield can range from 20 to 200% per annum.Of course, the latter option immediately catches the eye and beckons with its attractiveness. But with a high degree of risk, you need to be very careful. Basically, experts with no one year's experience work with such investment instruments.A beginner's investment portfolio should consist, as already mentioned, of all instruments with different degrees of risk. Balance is important when choosing companies. Stocks and bonds with low yield and low risk should be 35% of the entire portfolio. With an average return and an average risk of 35%. And finally, high profitability and high risks - 30% of the portfolio. This is the safest way to work with investments.After some time, when the investor has already figured out all the subtleties of investing and risks, he can change the ratio as he likes best. But the high yield should not exceed 50% of the entire investment portfolio, in any case. Otherwise, you can go bankrupt and lose your invested money.A well-designed investment portfolio is the key to the success of a good investor. A specialist will never risk his money, but will try to minimize his risks. And this is the only right way to achieve financial freedom. If you are looking for a fast payment method to withdraw winnings from online casinos, then payid withdrawal casinos australia his is the best solution for you.