How to Make a Portfolio for Investing
- 1). Choose investments according to your saving goals. Long-term goals, such as retirement, can handle more volatile investments than short-term goals, because the market can heal over time. A volatile investment, such as commodities, may plummet right before you need the money you've been saving for that short-term goal.
- 2). Gauge your reaction to risk and volatility. If you don't handle ups and down in the market well, buy mutual funds with long, good growth track records. This won't eliminate risk, but it decreases it. If ups and downs in the market don't both you, pick riskier stocks with a track record of high returns.
- 3). Spread your portfolio across different types of investments. Think beyond stocks, mutual funds and bonds and consider real estate. Property gains value over time.
- 4). Buy at the bottom, regardless of the type of investment. Buy real estate while most people are selling for whatever price they can get. Buy stock and mutual funds while the stock market is in a slump. When real estate and the market recovers, the value of your portfolio rises.
- 5). Study the types of markets you're interested in and stick to those markets. Sometimes called a "pattern," sticking to what you know and are interested in allows you to make more qualified decisions, decreasing your risk.
- 6). Get professional advice. Hire an investment adviser to teach you about investments. This gives you the help of a professional without handing your portfolio over completely.
