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What are the different types of portfolios?The two most commonly used terms in the share market are "Risk" and "Diversification." There Are 5 Different Types Of Share Market Portfolios Based On The Risk Factor.1. Growth-Based Portfolio This portfolio involves immense risk for the trader and a high-value return. 2. Income-Based Portfolio It can be stated as an income-based portfolio when the investment can give a steady income/ dividend. 3. Conservative Portfolios Conservative portfolios combine a certain amount of risk with a good market return value. Merging the growth forecast of growth-based portfolios and the low-risk aspect of Income-based portfolios, conservative portfolios offer an income with decent returns over a predetermined period of time. A mutual fund is an excellent example of a traditional portfolio. The Speculative portfolios have added risk more than any other type of portfolio pointed out here and consequently are connected with IPOs/ shares linked to industries of research and development, technology, health, etc. On the other hand, the Tailored /Hybrid Portfolios are customized portfolios that include the entire features that a bond or commodity can offer and the optimized risks and reward ratio that a trader can embark on. Now that we have taken a look at the kinds of portfolios that an investor can choose from, it is necessary that the traders have to diversify and invest in an extensive range of stock options to reduce or spread the risk factor and gives you even returns in the long run regardless of the market scenario.
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