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Posts Tagged ‘Portfolio (finance)’

If the egg is a stock term, share anything decent to buy for an investment portfolio that is formed is always protected from loss? Obviously to answer that question of course is not easy. Determining the stock A share B moves up and down, anyone could not tell if confronted with the market. For instance early last September, when global stock markets fell, the Indonesian Capital Markets also fell. Though obviously a good Indonesian economic fundamentals, earnings issuers also increased. Therefore, in order to avoid the risk that investors can do is to understand the characteristics of stocks that make up its investment portfolio.

For that thing to understand is knowing the type and characteristics of the existing stocks. On the stock market at least the same type and characteristics are divided into several groups, there are stock called seed stock or blue chip stocks, there are defensive stocks and shares some are referred to as speculative stocks, growth stocks and income stockserta cylical stock.

Stocks are categorized as blue-chip stock is a large capitalization stocks (the number of shares). Judging from the industry or services rendered, the shares of this stock into the blue category is a company that> leader in the industry. To know the blue-chip stock is relatively easy, because at the Indonesian Stock Exchange (IDX) investors live viewing only stocks incorporated in the LQ-45 index 45 stocks or illiquid.

With so many kinds of investment products that can fill that portfolio, causing investors need to do a variety of considerations before making any investment. Consideration before investing is all we can say as the process of determining investment decisions.

Talk to an investment decision process, then an investment, decision-making process must be continuous or called with an on going process. Therefore, in this investment decision process there are several steps that must be passed, determine your investment objectives, determining the investment policy and election strategy or investment scenarios.

Stage set investment objectives concerning the investment period (short / long), how the target return will be achieved. While the stage of determining the investment policy is to be taken by investors is to know and understand the risk characteristics (risk profile) each if one wants to take the risk or avoid risk, how much funding will be invested, investors flexibility in time to monitor investments, knowledge will capital markets. After that just make the selection of content and asset portfolios. If your entire portfolio is a stock, then that must be known are the characteristics and types of stocks.

Investing in any form must be filled will be at risk. Risks in investing can be anything, ranging from related products related to market the product. Suppose that when investing in property, then the investor will benefit significantly if the market was booming. But once the market plummeted, investors practically putting their money in investment instruments such as houses, land and other property products certainly losers.

In investing in the stock market too. When the share of oil sector experienced a boom because of rising commodity prices, cash petroleum sector stocks and other commodities increased substitution of oil prices. But once oil prices fall, suddenly torn sector stocks will decline. And the stocks of other sectors which increased for example, the banking sector, infrastructure and manufacturing. So in any investment forms and instruments of the targeted increase of investment and stock price decline is not permanent. It must have ups and downs: sometimes rising, flat and down.

Characteristics of such investment, causing investors must have a lot of investment strategies.
In the investment required to always “manage risk” for the investment is always optimal. And the easiest and most effective way to manage this investment fund is to place not just at one investment instrument, but do spread of investing in several investment products.

Make the distribution of investment strategy at many of these products is called by forming an investment portfolio. The objective of the portfolio is to reduce the investment losses that may arise from an investment vehicle with a closed using gains from other investment vehicle. In other words, if both are to benefit the investor will not suffer losses.