The choice of an investment portfolio

There is no consensus regarding the inclusion of investment-specific tools do not exist. Most people think that if they do not engage in investment like the professionals, they have no portfolio, and there can not be. The reality is somewhat different situation, because even such a conservative way of managing money, they can keep on deposit or a bank demand deposit, is profitable and can be considered as an investment. One of the most controversial issues is the formation of an investment portfolio. Universal recommendations on this issue does not exist, because in each case to make a decision based on the size of revenues and expenses of each of us, goals, duration of investment, and tolerance for risk. Based on these guidelines, you must select the tools best suited for the most of your investment portfolio. Consider the existing types of investment portfolios, the assessment which takes place in terms of potential risk and return. There is a direct relationship between yields and portfolio risk levels, which must be paid for it. The lower the threshold for making your own risk, the more reluctant to be portfolio strategy. In view of these factors can be identified conservative, balanced and aggressive portfolios, each of which matched individual investment tools. The conservative portfolio is aimed primarily at the preservation of capital with minimal risk and involves mainly debt instruments (bonds), yielding a permanent guaranteed income. In a balanced portfolio of added tools that have growth potential (eg, stocks), but also the risks of loss of attachment in this case is increasing. Aggressive portfolio designed for a possible rise in the price of the included tools and getting through this maximum profit, which is usually reinvested (embedded again). The flip side of this portfolio is a high risk of reducing the cost of investment. The degree of investment risk is quite different. If we talk about the deposit, then it is less risky, but here it is necessary to take into account the reputation of the bank. Investments in the stock market more risky. Nevertheless, one can argue that the entire stock market is dangerous, because each particular tool in this market has its own level of risk. Investments in bonds, for example, less risky than stocks. In turn, shares a third-line are less reliable than the blue chips, while the futures more risky than stocks. This way, we can conclude that investing in the stock market are less reliable than the deposit, as all the instruments with high returns have higher risks. Invest in real estate and precious metals such as silver, gold, also considered as part of the portfolio. Just when choosing the tools necessary to take into account is their property as "liquidity". Liquid instruments can be fast enough to cash without significant loss in value. It is important to be clear about the fact that, for example, property can not find a buyer for years. Prematurely removing money from the deposit of a bank deposit you lose interest thereon, and any position on the Securities on the Stock Exchange can be closed almost immediately, and, very importantly, with a substantial profit. Acceptable risk level determined by mathematical calculations, depends on several factors, not the least of which is occupied by your attitude to money and awareness of the nature of investment. Consider some examples. A man aged 35, having a stable job, regular salary and career prospects, can afford to use aggressive strategies that imply a fairly risky investment instruments with a view to obtaining a higher income. In this case, its investments are at increased risk, because you can make up the lost amount in case of loss. Entirely different strategy would be to use an older man who wants to save before retirement the accumulated capital and secure a peaceful and dignified old age. Thus, in this case, the strategy will be the most conservative and reliable. We summarize the basic principles that should guide the formation of financial portfolio: 1. Formulate a goal that you want to achieve by investing. 2. Decide for yourself whether you want to quickly accumulate money, or save them. 3. Define the term for which you would like to invest. 4. Carefully consider acceptable for your level of risk. All portfolios on the stage of its formation based on these basic principles. Regardless of who put money into real estate, deposits, stock market, or invested real economy - the choice is yours and depends on the objectives and expected revenues. Make its first investment portfolio is the most reasonable, enlisted the help of professionals in this field. Kochetkov, Stanislav