How to manage your portfolio like a professional?

Portfolio will be a boon for us if we manage it with proper research and knowledge. It reduces risk of the investment and has high returns potential. To achieve this, it's essential to manage your portfolio like a professional. In this blog we will teach you how to manage your portfolio like a professional.

Choose stocks for your portfolio

Choosing a good stock for a portfolio is not an easy task. We will give you a lesson that will help you choose good stocks for your portfolio. First, look at sector wise stocks like IT, health, automobile, electronics, education, finance, banking and other services and manufacturing sectors. After choosing a sector, look for the largest companies in that particular sector and a newly upcoming listed company in that sector that competes with the older companies. List out those companies and collect their information like, how many manufacturing units they have, how many employees working under the company, company age, areas served, quarterly sales, revenue & cash flow.

Add Limited Stock To Your Portfolio 

A portfolio is called a diversification of stocks or a basket of stocks . This reduces the risk factors and increases the potential for higher returns. But to build a portfolio it is necessary to add stocks. Many advices suggest not to invest on one stock or two stocks, try to invest in multiple stocks if one stock crashes then other stocks will compensate your entire loss. If you have invested in only one stock and it crashes then it will be a capital loss for you. We suggest you add 15-20 stocks to your portfolio. If you add more stocks it will be difficult to manage them. Because it is important to research and get information about that stock. If you add more stocks then you will not get time for proper research for that stock.