Different Types of Portfolios

You’d often hear the stock advisors advising people about maintaining a portfolio of all of their stock investments to know how close they have reached to their goals. Just like you can’t always have the same eggs in your basket, it is important to have different types of investments as well in your portfolio. One major factor that is used to judge different portfolios is its risk competence. There are a few common types of portfolios that people all over the world keep to keep their investments sorted. Take a look at some of these types share market portfolio discussed in the sentences that follow.

The Aggressive portfolio:

There are always a variety of players in the stock market and the ones who have a highly aggressive approach towards investments are the ones who do not limit their investments to one type and are always willing to take some risk to grow as an investor. These types of people maintain an aggressive portfolio. In this type of portfolio, all the stocks that are listed have a high proposition towards risk as well as the rewards. They would experience high levels of fluctuations.

The Defensive Portfolio:

This type of portfolio is completely opposite to what we discussed above in the aggressive portfolio and the investors here try to play a defensive game when investing in the stocks. Their portfolio won’t generally have any stock that has a high risk proportion and therefore these stocks would be widely isolated from the major movements that take place in the market. The fact here is simple, these stocks won’t get affected majorly even in conditions when the stock market is widely seeing a downfall or the economies all over the world are showing major fluctuations. As the risk is low, the amount of profits of the shares to buy too won’t be as high as compared to that in the aggressive portfolio stocks.

The Speculative Portfolio:

For all those people who are never worried about taking bigger risks, maintain this kind of portfolio. It is said that this portfolio looks nothing less than pure gambling. In comparison to any other portfolio that we’ll discuss here, this has the maximum amount of risk. People having this type of portfolio keep themselves aware about what is happening in the company of which they have shares to sell. They keep an eye on upcoming decisions and make their investments according to that.

Hybrid Portfolio:

For now that you have checked out all the different types of portfolios, a hybrid portfolio has some characteristics of all of these. The investments made through such a trader would vary across various fields in such a way that a unique balance is created. These type of investors prefer to put in their money in the government schemes, ETFs, etc. through such a portfolio, the investor ensures that they have stocks that will give fixed yet guaranteed returns while some of such options as well that are majorly dependent on the risk factors.