How to build an effective portfolio?
Portfolios need to be constructed based on various factors such as risk appetite, expected return, the timing of investments, or views on a particular asset, sector, or trend.
Some typical portfolio models are as follows: Defensive, Conservative, Balanced, and Growth with different goals. While the Defensive Portfolio aims to preserve capital with minimal risk, the Conservative Portfolio aims to achieve modest growth with low risk. For investors willing to take on a higher level of risk, the Balanced Portfolio seeks to capture moderate capital growth through a balanced risk-reward approach. For investors looking for an outstanding return, a possible option is the Growth Portfolio, which aims to maximize capital growth potential through exposure to a large portion of risk assets. Once the investment portfolio is determined to suit the risk appetite of the investor, asset classes selection and assets allocation will be implemented.
Typical portfolio models
Defensive
Conservative
Balanced
Growth
