How to build your first portfolio
How do you know where to start on your investment journey? Listen to the episode below.
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How do you know where to start on your investment journey? There is so much information about what you should and shouldn’t do when starting out. However, every investor should stop and reflect on which level they fall into and then make the decision on how to invest. Then you can start building your first portfolio...
Three considerations to think about are:
- Time
- Interest
- Knowledge
Depending on how much you have of each of these will determine what level is right for you. To help understand where you fall on the scale, we have broken the difficulty up into four categorise.
- Managed - where someone does everything for you.
- Target date fund - these funds will automatically reduce your risk as you get toward the end date of the fund.
- DIY passive - Invest via a broker into an index fund. It's a cheap way of gaining market exposure and diversification but you need a bit more experience.
- DIY active - Building your own portfolio gives flexibility and the opportunity to make better returns than the market but required expertise.
If you want to learn more on this subject, (plus loads more) check out the episode below:
