Types of Portfolio & How to built Portfolio.

There are 5 Types of Portfolio in General.

One can select kind of Portfolio that suites individual as per Risk & Goal.

1.DEFENSIVE –

Here selected stocks are less Beta category.Safe,Low Risk,Consumable stocks. Here Returns are very Moderate But have Huge margin of safety.one invests in Equities & Bonds.

One can expect 10% To 18% Yearly returns.

2.HYBRID –

Here one can invest in Bluechips,Diversified Funds,Stocks and Bonds.

One can Expect 12% To 24% yearly Returns over a period of Time.

3.SPECULATIVE –

Here one can invest in IPO for Quick listing Gains.Potential Take over candidate or Merger candidate – For example Bhushan steel,Aditya Birla Nuvo etc.

One also invest in High Beta stocks on Bets of Sum insider news, On expectation on some announcement.which are High Risk & High Returns.But on negative side you can even Loose Huge money.

Here one can Expect 15% To 50% returns annually.

4. INCOME –

One can invest in stock to generate passive income.Your money keeps working for you over a period of time.One can invest in High Divided yield stocks like – PFC,REC,COAL INDIA IOC,HPCL,NMDC etc.

The dividend yield can vary from 3% To as high as 12%.

One also invests in REITS.Here margin of safety is very high & Safe.

One can expect 12% To 24% yearly returns over a period of Time.

5.AGRESSIVE –

Here one invests in Stocks of High Beta for short, medium and Long Term.

They keep experimenting with new companies also.Take huge Risk and if Risk goes in Favour huge money can be made for example – Those who pick early ideas and hold with patience stocks like Rain,HEG,Graphite,Goa Carbon,Kanchi Karpooram,ibull Ventures etc.

In above stocks returns are as high as 2000% to 2200%

But On flip side if your speculation goes wrong or there is fraud by company or any governance issue or product of company fails than one can loose 100% of money also.

For Example – Stocks like Rcom(850 To 10,JP Associates ( 1000 To 6),PC Jewellers,Gitanjali gems,Kingfisher Airlines,yes bank etc.

In this kind of portfolio when investor makes money in few good trades he feels he has became expert and start taking more risk.

Here investor chases stocks,Wants to trade daily or stay investment in markets all the time.

Here Sky is the limit for returns and one can make as High as 100%+ returns annually But can even loose 100%.

We@ wealthcreatures feel one should decide there Risk and than one select portfolio as per risk & Time frame.

Disc – All views expressed are for Educational and study purpose only.All views are personal.consult your financial advisor before investing and building portfolio.