Sunday, May 18, 2008

How Much Risk Does Your Investment Portfolio Have



Is your investment portfolio too risky?

When it comes to your investment portfolio, it is important to determine how much risk you can handle. It is also important to periodically review your investment portfolio to change the risk level of your portfolio. But how do you know if your investment portfolio is too risky? Well, you can find that out by looking at the kinds of investments you have.



Stock investments
Any investment is going to have a certain degree of risk. The fact of the matter, though, is that some investments naturally carry more risk to your investment portfolio than others. Stocks are generally more risky than mutual funds. Cash is the least risky investment of all. Of course, this risk factor is why there is a greater potential for you to make more money in stocks. The riskier an investment is, the more you are likely to lose. The flip side, of course, is that greater risk and chance of earnings also translates into the chance of increased loss.





Stocks generally have a higher risk than other types of securities investments. However, stocks are also divided according to risk. Growth stocks and value stocks are two main catagories that you can use. Value stocks are important to investment strategy, as they offer a chance to build on solid companies with strong fundamentals. Growth stocks are generally newer, and have potential for growth. Having a few of these can increase the earnings of your investment portfolio, but too many can make your portfolio too risky.


Playing it safe with your investment portfolio
You can play it safe by giving your investment portfolio a solid foundation. Mutual funds are less risky than stocks, as are some bonds. However, just as there are growth stocks, there are also growth mutual funds which carry more risk. Make sure that your mutual fund holdings offset your stock holdings; if you have growth stocks, make sure that your mutual funds are conservative.


You can also play it safe by including cash investments in your investment portfolio. Money market mutual funds have extremely low risk. Additionally, high-yield CDs are concerned investments as well. The majority of your investment portfolio should not be in cash, but adding cash to your investment portfolio adds diversity (which is important for cutting risk) and underlying stability.


Carefully considering your risk tolerance and your investment portfolio can help you re-allocate your investments in a way that reduces the risk. While there will always be risk in investing, you can protect yourself against extrememly high risk, even while building wealth.




How to Spot a High Yield Investment Opportunity

Find out the truth about Spotting High Yield Investment Opportunities and see if they are right for you at this time. Please read our unbiased review of Spottin
Isn't it true that when you make an investment, you are hoping to get the highest return that you possibly can? That is completely understandable and more common than you might think. Sure, making an investment is about possible risk but it is also about possible gain, and the likelier the gain is the better the investment opportunity is going to be.


We all want to find the best high yield investment opportunity that we possibly can, but that is not always possible without having to constantly peruse the newspaper, the internet, and other resources to find out which investment opportunities have the highest likelihood of doing some good.





Keeping an Eye on High Yield Investment Opportunities
If you are interested in finding a way to monitor the different investment opportunities and find the right high yield investment opportunity for you, there are some ways to keep track that don't involve the newspaper.


There are some websites out there that are completely dedicated to high yield investment opportunity news and statistics, and they can give a potential investor all of the information that they need to make the best decision possible, at least as far as investment opportunities go. They give minimum investment, maximum payouts, referral information, and just everything that a person could need to make an informed decision regarding their investment possibilities.


Why Monitor High Yield Investment Opportunity Sites?
There are many sites out there that are dedicated to monitoring high yield investment opportunities, and for good reason. Nobody wants to invest in something that is going to end up costing them money, certainly not first time investors. For those out there who are looking to have real return on their investments and find the ones that offer the greatest likelihood of that, such high yield investment opportunity monitoring sites are necessary to keep an eye on things.
They give all of the information a person could need to get started with none of the research involved, and that is a good thing. It saves both time and money that could be applied toward other, more productive and profitable things and that is the type of thing that smart investors should be looking for.


For those out there who are on the lookout for a high yield investment opportunity, check out some of the high yield investment sites out there that monitor the progress of different ventures and provide the info that you need to get started.