Put in Place a Solid Investment Strategy and Execute on it

Allocating your money among different asset classes is a key pillar of every solid investment strategy.

Asset allocation means spreading your money across various asset classes such as stocks, bonds, cash or money market securities.

The right asset allocation is a function of your investment strategy, which is in turn based on your risk tolerance.

That’s where you want to start your investment journey, by crafting an investment strategy that works for you.

Only then, you can construct a portfolio that suits your needs.

This 3-step approach will help you achieve exactly that. 

1. Develop your own investment strategy

Ask yourself if your risk appetite gravitates towards conservative or very aggressive risk. Investors with a long-term horizon and larger sums may feel more comfortable with high-risk / high-return options. On the contrary, investors with smaller sums and shorter investment horizons may opt for a more conservative approach.

2. Construct your portfolio

Every investment is exposed to market fluctuations. Asset allocation protects your entire portfolio from the ups and downs of a single asset class. Construct your portfolio by investing in various asset classes based on your investment strategy.

3. Review your portfolio regularly

When your portfolio is up and running, conducting a periodic review is crucial. This should include a consideration of how your financial needs have changed, as well as how each asset class has moved relative to other asset classed in your portfolio.

If you liked this post, follow @Sahmik_at for more.

#Sahmik_at #Qatar #QatarStockExchange #QSE #finance#GulfCooperationCouncil #GCC #GCCnews #news#stockmarket #stocks #stocknews #financialnews#stockmarketperformance #stockperformance #investments#financialinvestments

​