22 Jan 5 steps to build a diversified portfolio
If you’re looking to build an investment portfolio with broad diversification, here are five steps to help you get started.
1. Set your goals
Be clear on your time horizon and your risk tolerance.
This will determine how much of your portfolio you allocate to risky assets like shares and more defensive assets like bonds.
2. Diversify
You can use exchange traded funds—known as ETFs—and managed funds to invest in a range of asset classes and securities globally to spread your risk.
3. Keep costs low
Costs like management fees and transaction costs affect your returns. You don’t have to go for the cheapest fund—but instead be sure to balance cost and quality.
4. Stay disciplined
Investing can be an emotional experience. Stick to your long-term plan and avoid making big changes when markets become volatile.
5. Harness expertise
For confidence and peace of mind, harness the knowledge and expertise of professional investment managers.
Our investment team is ready to help you accomplish your financial goals and needs. Feel free to send us an email at info@centrawealth.com.au or give us a call at 08 82314709.
Article courtesy of Vanguard.
