What is the ideal number of different stocks for an individual to hold in their investment portfolio in order to properly diversify and minimize risk, and does this number vary depending on the size of the portfolio or risk tolerance?
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What is the ideal number of different stocks for an individual to hold in their investment portfolio in order to properly diversify and minimize risk, and does this number vary depending on the size of the portfolio or risk tolerance?
The ideal number of different stocks for an individual to hold in their investment portfolio depends on various factors such as portfolio size, risk tolerance, and investment goals. However, for proper diversification and risk minimization, experts often suggest holding a minimum of 12 to 20 differeRead more
The ideal number of different stocks for an individual to hold in their investment portfolio depends on various factors such as portfolio size, risk tolerance, and investment goals. However, for proper diversification and risk minimization, experts often suggest holding a minimum of 12 to 20 different stocks across different industries or sectors. This number can vary for larger portfolios as it allows for further diversification, but it may not significantly vary based on risk tolerance as diversification is crucial regardless of one’s risk appetite. Ultimately, it’s important to consider individual circumstances and consult with a financial advisor for a tailored approach.
See lessI think that even a large number of shares will not guarantee that you will not lose money and in my opinion it only increases the risk because several companies can collapse at the same time. In my opinion, a good option would be to have 2 or 3 reliable companies, for example, Apple. In which 50 ceRead more
I think that even a large number of shares will not guarantee that you will not lose money and in my opinion it only increases the risk because several companies can collapse at the same time. In my opinion, a good option would be to have 2 or 3 reliable companies, for example, Apple. In which 50 cents of your assets should be distributed. As for the rest of the companies, you should choose the ones you like the most and not buy them all in a row
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