Skip to content

Human Boundary

Trending News Across the Globe

  • Traveling Tips For The USA - Simple Do’s And Don’ts For Travelers
    Traveling Tips For The USA – Simple Do’s And Don’ts For Travelers Business
  • 2 Of The Best Business Newsletters To Subscribe To In 2019
    2 Of The Best Business Newsletters To Subscribe To In 2019 Business
  • Maintaining Your Office Clean
    7 Ultimate Tips You Can Use in Maintaining Your Office Clean Business
  • Set Up Two-Factor Authentication
    How To Set Up Two-Factor Authentication For Your Accounts Technology
  • Chicken and Paleo Diet
    Chicken and Paleo Diet: Diet Fit for the Modern Day Eater Diets
  • Camera For Your Vlogging Business
    Tips For Buying A Good Camera For Your Vlogging Business Business
  • 7 Tips To Consider When Choosing A Wedding Caterer
    7 Tips To Consider When Choosing A Wedding Caterer General
  • Why College Students Should Always Have Email Signatures
    Why College Students Should Always Have Email Signatures Education
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

  • Tips to Avoid Common Accounting Mistakes
    Five Tips to Avoid Common Accounting Mistakes Finance
  • Creative Ways to Celebrate Gudi Padwa Festivals
  • Ganpati Songs
    Popular Ganpati Songs – Downloads Ganesh Chaturthi Songs (Hindi, Marathi, English) Ganesh Chaturthi
  • Top Bluechip Mutual Funds in India Finance
  • How do I manage my grief! Health & Well-Being
  • Ganesh Visarjan
    Ganesh Visarjan 2022 – Anant Chaturdashi Celebration in India Ganesh Chaturthi

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
  • Jewelleries You Must Have If You Are Getting Married
    Jewelleries You Must Have If You Are Getting Married Business
  • Monsoon Rains Tracked By NASA Following Kerala Floods
    Monsoon Rains Tracked By NASA Following Kerala Floods World
  • Interesting Things You Didn’t Know About Karate
    4 Interesting Things You Didn’t Know About Karate Education
  • 4 Things to Remember ~ Knocked or Broken Out Tooth? Health & Well-Being
  • Ohio Cannabis Users Going To Michigan For Products Health & Well-Being
  • Teachers Day Speech
    Happy Teachers Day Speech in Hindi, English, Marathi Teachers Day
  • Plant-Based Turmeric Protein Powder
    Top Reasons to Buy Plant-Based Turmeric Protein Powder Health & Well-Being
  • natural fat burners
    Can Certain Food Items Act As Fat Burners? Find Out Here! Diets

Copyright © 2025 Human Boundary.

Powered by PressBook News WordPress theme