Skip to content

Human Boundary

Trending News Across the Globe

  • Reasons Why Your Business Should Shift To PowerBI Governance
    Reasons Why Your Business Should Shift To PowerBI Governance Business
  • Interesting Things You Didn’t Know About Karate
    4 Interesting Things You Didn’t Know About Karate Education
  • Tips For Finding A Good Amazon FBA Sourcing Agent
    Tips For Finding A Good Amazon FBA Sourcing Agent Business
  • Replace Your Resident Card
    How Much Time does it take to Receive a Replacement Resident Card? Business
  • Top Construction Tech Innovations To Streamline The Industry
    Top Construction Tech Innovations To Streamline The Industry Technology
  • Dealing With Pain and Anxiety? Here’s How to Choose the Best CBD Oil for Your Ailment
    Dealing With Pain and Anxiety? Here’s How to Choose the Best CBD Oil for Your Ailment Health & Well-Being
  • Unattended Death Cleanup Services
    Understanding Unattended Death Cleanup Services: What Should You Know? Health & Well-Being
  • TATA India Consumer Fund: A New Fund for a Growing Sector Finance
How Many Shares Should You Have In Your Portfolio

How Many Shares Should You Have In Your Portfolio?

Posted on November 6, 2020November 30, 2020 By Deepak

Should I sell my Commonwealth Bank shares? The issue of buying and selling shares is a tricky one. People do not just sell or buy shares because they feel like. There must be good investment reasons behind such a decision. In selling or buying shares, you must consider several aspects, including how it will affect your stock portfolio. For instance, if a certain important drug by a pharmaceutical such as GSK is showing a considerable efficacy, for sure, the GSK shares will see a rise, and consequently, people would prefer buying them. So before buying or selling a share, all aspects should be taken into consideration. But wait, how many shares do you have in your portfolio?

How Many Shares Should You Have In Your Portfolio

For some people, especially those new to the ASX world and those who have inherited shares, being an investor is all about owning one or two company shares. That is where the heavy financial rains start beating them. It is true that companies like the Commercial Bank of Australia that have been in ASX 200 for decades cannot disappear overnight. However, that does not push away the fact that holding a few shares is an extremely risky game. In the world of investment, those who make money are the pessimists. They figure the worst-case scenarios and laugh all the way to the bank when things turn out ‘average’.

How many ASX shares should I own?

The concept of diversification is an important one, especially for beginners. There is no better place where the old proverb of ‘never putting all the eggs in one basket’ applies than in the stock market. You need to remain covered however volatile the market threatens to be. If one company suffers mismanagement issues, you will still have shares of other companies to keep you warm in winter.

Past studies have shown that beyond 30 diverse investments, the benefits of diversification gradually weather out. That is why most professionals preach ’30’ as a magical number. However, research also showed that 70% of benefits resulting from such diversification can be captured in just 10 different shares. Does that sound impressive or confusing? You know better. Some investors, therefore, recommend 10-20 diversified ASX shares for those who are just getting into the game.

Diversify different industries

The aspect of diversification can be confusing at times. Investing in ten commercial bank shares does not make your portfolio diversified. It is like buying the same brand of car but different models. Certain things will never change. To absorb the shock associated with stocks, it is important that you diversify across various industries, sectors, and geographies. For instance, putting more than 30% of your investment in ASX bank stocks alone might be considered risky. Remember, if there are significant changes in interest rates or bank regulations, it will affect all the banks regardless of their sizes.

Try ASX 200

Choosing 20 or 30 best stocks might be a difficult task, especially if you have $5000 or less for investment. ASX 200 is a bunch of 200 best performing shares in the Aussie Stock Market. Owning a single share of this stock is like buying a fraction of each of the 200 companies. It is a good idea for a beginner because the diversification is achieved automatically. Is it something you should consider? That remains your decision to make.

Finance, Updates Tags:Portfolio

Post navigation

Previous Post: {Best} Navratri Durga Mata Facebook Cover Photos, Banners 2020
Next Post: Happy Diwali Wishes, Quotes, Messages For Whatsapp & Facebook

Related Posts

  • Top Tips for Face Health & Well-Being
  • The Diet of the Elderly Diets
  • Raksha Bandhan Rakhi images, pictures 2017
    Collection of Rakhi Images, Pictures for Raksha Bandhan Raksha Bandhan
  • Happy Teachers Day Whatsapp status & messages
    Happy Teachers Day Whatsapp Status and Facebook Messages Teachers Day
  • Creating-an-Outdoor-Kitchen
    Outdoor Cooking and Entertaining: Ideas for Creating an Outdoor Kitchen or Dining Area Updates
  • Jewellery - The Perfect Gifts for Woman's Day
    Jewellery – The Perfect Gifts for Woman’s Day Festivals

Recent Events

  • Dussehra Wishes
  • Happy Dussehra 2015
  • Happy Dussehra HD Images
  • Happy Dussehra HD Wallpapers

Recent Events

  • Navratri Durga Mata FB Cover
  • Durga Maa Aarti Free Download
  • Navratri Wishes & Messages
  • Navratri Garba Songs Download Mp3

Recent Posts

  • How Online Games Can Affect An Individual?
  • Outdoor Cooking and Entertaining: Ideas for Creating an Outdoor Kitchen or Dining Area
  • “Beginner’s Guide: How to Start SEO Yourself”
  • How can you celebrate New Year’s Eve 2024?
  • Happy New Year 2023 Wishes
  • Wacky and Helpful Things to Buy for Your Pets
    Wacky and Helpful Things to Buy for Your Pets Events
  • Simple Morning Exercises
    Why Simple Morning Exercises Are So Important For Your Health Health & Well-Being
  • Boucherouite Moroccan Rugs
    Here are the Top Things You Probably Don’t Know About Boucherouite Moroccan Rugs Business
  • When To Worry About Neck Pains
    When To Worry About Neck Pains Health & Well-Being
  • Burner Management Systems
    Using Burner Management Systems (BMS)For Safe Burner Operations Technology
  • Questions To Ponder When Searching For A New Office In LA
    Questions To Ponder When Searching For A New Office In LA Business
  • Experience The Bliss Of Authentic Italian Cuisine At The Best Restaurants! General
  • How to fix Unable to Access Jarfile Minecraft Server Error Sports/Games

Copyright © 2025 Human Boundary.

Powered by PressBook News WordPress theme