UNX News Magazine
  • Home
  • Business
  • Education
  • Finance
  • Health
  • Home
  • Real Estate
  • Shopping
  • Sports
  • Tech
  • More
    • Auto
    • Law
    • Travel
No Result
View All Result
  • Home
  • Business
  • Education
  • Finance
  • Health
  • Home
  • Real Estate
  • Shopping
  • Sports
  • Tech
  • More
    • Auto
    • Law
    • Travel
UNX News Magazine
No Result
View All Result

Types of Portfolios that You Should Try

Hailey Cady by Hailey Cady
4 months ago
in Finance
0
Types of Portfolios that You Should Try

stock, market, graphs

0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

Investors often go crazy about diversification, which simply means they are not putting all their investments in one basket.

They do this to control and mitigate their risks. Generally, proper diversification results in better returns on investments.

However, diversified portfolios aren’t one and the same. There are different types of portfolios for different investors. Here are the main types of them.

Defensive Portfolio

Defensive stocks do not carry high risks. They are also fairly immune to broad market movements. Meanwhile, cyclical stocks refer to those most vulnerable to the underlying economic and business cycle.

During recessionary times, companies that make the basic necessities and utilities usually fare better than those that are serving fads and luxuries.

No matter how bad the economy is performing, these defensive companies will stand pat and survive. In effect, these stocks offer another layer of protection against catastrophic events.

Many of these stocks also often offer dividends, which help you minimize the capital losses you may incur.

Income Portfolio

Meanwhile, an income portfolio aims to make money through dividends or any other types of income distributions to shareholders.

These companies are similar to defensive ones, but they offer somewhat higher yields. An income portfolio can be expected to generate some positive cash flow.

You can try real estate investment funds (REITs) and master limited partnerships as good sources of income-giving investments.

Such companies usually give a huge part of their income to their shareholders. They do that for a great tax status.

You can also use an income portfolio to complement your salary or your retirement income. Find stocks that have fallen out of favor but still have dividend policy.

Aggressive Portfolio

An aggressive portfolio invests in stocks that have high-risk-high-reward tradeoffs. These stocks usually have high beta or sensitivity to the overall market.

Most companies that have aggressive stocks are usually in the first stages of their growth and have some distinct value proposition.

Creating an aggressive portfolio needs you to be willing to find such companies since most of them aren’t typically household names.

The most common sector to find these stocks is the tech sector. Risk management also becomes very important when creating and maintaining an aggressive portfolio.

Speculative Portfolio

A speculative portfolio carries the highest risk among any other portfolio type. Many finance experts advise to keep your investible assets funding speculative portfolio to 10% max.

Speculative investing can be done through initial public offerings (IPO) or stocks that are seen to be takeover targets.

Technology firms that are currently researching a breakthrough product could fall into this category, as well as junior oil company that is releasing its initial production.

Hybrid Portfolio

Building a hybrid portfolio means you pick other investments like bonds, commodities, real estate, and even art.

Using a hybrid portfolio lets you adopt a more flexible approach. Generally, this kind of portfolio will contain blue-chip stocks and some high-grade government or corporate bonds.

Moreover, a hybrid portfolio would allow you to invest in a mix of stocks and bonds and relatively fixed proportions.

Previous Post

What Type of Data is Provided by B2B Data Providers from Marketing Point of View

Next Post

5 Key Advantages of B2B Payment Processing

Related Posts

Fraud Management System for Detection and Prevention in Banking Sector

Fraud Management System for Detection and Prevention in Banking Sector

February 5, 2021
Gain Exposure to Gold Using These Methods

Gain Exposure to Gold Using These Methods

January 11, 2021
5 Key Advantages of B2B Payment Processing

5 Key Advantages of B2B Payment Processing

January 5, 2021
How Stock Market Career Works

How Stock Market Career Works

December 31, 2020
Things to Consider While Investing in ULIPs

Things to Consider While Investing in ULIPs

December 23, 2020

How to consider Poor Credit Financing

January 18, 2021
Next Post
5 Key Advantages of B2B Payment Processing

5 Key Advantages of B2B Payment Processing

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Top Stories

Making the Best Use of Law Firms in Dallas, TX

Making the Best Use of Law Firms in Dallas, TX

April 22, 2021
SAP Consulting Has Great Benefits

SAP Consulting Has Great Benefits

April 20, 2021
Hit by a federal, state, or city employee? Call a lawyer!

Hit by a federal, state, or city employee? Call a lawyer!

April 16, 2021
Law

Making the Best Use of Law Firms in Dallas, TX

The law is comprehensive. Basic knowledge demands that law is extensive and keeps changing all the time. That is where ...

April 22, 2021
Tech

SAP Consulting Has Great Benefits

One of the things that is so attractive about SAP Consulting is the access to a wide range of skills ...

April 20, 2021
Law

Hit by a federal, state, or city employee? Call a lawyer!

Unfortunately, car accidents in Nevada are quite common. Following an accident that was a result of someone’s negligence, you have ...

April 16, 2021
Law

How does Experience of the Divorce Attorney Gather Resources for your Case 

You could read about everything in the books about family law and could attend the lectures of the most qualified ...

April 7, 2021
Home

Top 6 Tips for Cleaning Up After a Flood

Each year, floods kill more individuals than hurricanes, lightning, and tornadoes combined. They may also wreak havoc on businesses and ...

April 6, 2021

Recent Posts

  • Making the Best Use of Law Firms in Dallas, TX April 22, 2021
  • SAP Consulting Has Great Benefits April 18, 2021
  • Hit by a federal, state, or city employee? Call a lawyer! April 15, 2021
  • How does Experience of the Divorce Attorney Gather Resources for your Case  April 7, 2021
  • Top 6 Tips for Cleaning Up After a Flood April 5, 2021

Archives

  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • May 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019

© 2020 UNX News Magazine - All Rights Reserved.

  • Get support

No Result
View All Result
  • Get support
  • Home Layout 1

© 2020 UNX News Magazine - All Rights Reserved.