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Ideal portfolio for investment purpose
By qwcdirect | February 12, 2010
Good asset allocation is the main key to get the maximum profit through the market. It s a highly debatable issue about the ideal portfolio for investment purpose but to be on a safer side it is always better to have a balanced portfolio. It should have enough flexibility so that if there is any market pressure, it can be quickly modified.
The portfolio also depends on the age of the investor. For example a young investor’s ideal portfolio may have 35% in stocks, 35% in mutual funds, 20% in bond and 10% as cash. For the old and retired the ideal portfolio would be 40% in government securities, bonds and pension schemes, 30% in fixed deposits, 15% in mutual funds and 5% in stocks. The rest 10% should be in medical insurance and cash.
It is important that you must not consider market as an instant profit gainer as that is not practical. Invest in a calculated way then you can actually gain a real profit from your investments.
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