In the field of finance portfolio could be interpreted as a set of assets in the form of investments that are owned by us or the company. The investment could be deposits, gold, shares, property, bonds, and others.
If we want to have a portfolio of at least we must know our own profile, we need to know how much capital we have. If we have minimal capital, then a suitable portfolio for us is to have a long term goal. Or if we aim for the children's education savings or retirement funds, long-term investment is suitable for you.
Long-term investment could be in the form of deposits and saving shares. Saving that is suitable for long term investment is by purchasing shares of the anti-crisis and defensive.
But if you aim as income fields, then the investment is suitable for you is short term investment.
Usually those who want to make investments as income fields prefer investment that offers a great income. Unfortunately the huge income that offers investment is always followed by a high risk as well. To it for the beginner should learn in advance, this is due to much related to the knowledge and experience of an investor. The higher the hours flown is then getting lower also risk factors. If you don't learn it first then the risk factor would be so great for you. Conversely, if you want to learn then you can risk factor reduction.
Here I would like to provide information related to the purpose of your investment. But this information is associated with long-term investment for the purpose of education funds and pension funds.
Risk factors that had rarely thought about are an asset of our resources. This is related to ourselves. We are like a money machine as if the machine was damaged then stalled anyway our income.
Our bodies are composed of flesh and blood of course could not be spared from certain diseases that can spend resources and cause death. If these assets are not protected as a result is very influential on those who depend on us. To reduce the risk, for the time being for the purposes of the education fund investment and pension funds should preferably be made on investments that have protection.
Many insurance companies offer protection. Investment offered was a variety, can be in the form of deposits and shares. Of course the types of investments offered are aimed at the long term. While the protection offered was diverse. For that you need to consult with professionals in the field of financial planning for planning education fund and the pension fund.
Portfolio analysis and investment risk.
The main points in the risk profile was how committed you are to minimize risk. Investing in the financial markets, portfolio is one of the aspects that cannot be viewed lightly.
The portfolio will determine the return you want in order to optimally. There are three main factors i.e., goals and risk capital.
Financial experts May reveal, Ellen stock portfolio in a simple can be called a collection of investment assets, can be a property, deposits, stocks, gold, bonds, or other instruments. The stock portfolio is a collection of investment assets in the form of shares, both owned by individuals or companies.
There is another called portfolio management, namely how to manage a collection of assets to achieve the investment objective. One way to manage the portfolios is to minimize risk. "Before doing the portfolio management, we recommend that you check first the investment profile of each," said Co-founder Ellen May Institute.
Ellen reveals, in investing needs to pay attention to the CAST is to wit Capital, Objective, and Risk. For those of you, who have small capital, should be used for investment, not for stock trading due to lack of illiquid. "Small capital also makes a limited stock of the election and the need to take into account the cost of trading because of automatic fee will be greater," said Ellen.
Next said Ellen is the objective or purpose. What would you like to buy stocks? If the goal for child savings or pension funds, the annual investment by saving suitable for you. Saving can be analogized simply like to manage mutual funds.
The third factor in managing a portfolio is the risk profile. As we know, the stock is a fairly risky investment what else if not accompanied by a true science. "The stock market could be volatile as quickly," said Ellen who is also the author of "the Smart Trader Not Gambler".
Risk profile is much related to the characteristics of the investors, namely the type conservative, moderate and aggressive. Conservative investors tend to avoid risks by looking for something safe. Usually this type of investors is retirees who just want to earn some extra income from stocks.
While investor moderate investor risk tolerance level has a higher yield, provided the results are worth it. Moderate investor type has capability of moderate risk, but the larger the yield expectations of deposits for example (10 percent - 20 percent per year).
Most investors want to get lucky but do not want to limit the risks. Whereas in principle applicable investment High Risk High Return. Investments that offer higher yields, certainly has risks.