Investing presents an excellent opportunity to grow your wealth over time. However, for beginners, it can seem overwhelming due to the numerous financial terms and strategies involved.
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Common questions include: how do you begin, and where do you go from there?
Once you understand the basics of investing, including factors that influence investment decisions and having a plan for managing both risk and rewards, you can start building a portfolio that balances safety, income and growth.
EWN spoke to Galileo Capital’s Warren Ingram. He honed in on how and why you should start building your own investment portfolio. According to Ingram, while most people think it’s a very complicated process, you can build a portfolio in a relatively simple way. That’s if you make a few key decisions at the start.
When creating an investment portfolio, you set yourself up for long-term financial success, but before making any investment decisions, including the type of account or investment you would like to make, you should consider a number of factors.
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Follow these key steps to build yourself a tailored investment portfolio.
According to Standard Bank Investments;
- Know your investment goals
- Match your investment type with your goals
- Choose the personal investing formula you want to go with
- Understand the risk tolerance of investments
- Choose the right type of account you want to go with
- Review your investment portfolio regularly, as financial markets evolve most of the time
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