Term:PORTFOLIO

A small group of shares and other investments belonging to a single investor. As a private investor, you should aim to have between 5 and 8 different shares in your portfolio. Each additional share that you add reduces the risk in the portfolio, but spreads your time more thinly. So there is a trade-off between reducing risk and maximising the use of your time. Your portfolio of shares should be selected from your watchlist – which is a list of up to 30 shares which you are following closely because they could represent a good buying opportunity. Our advice is that you  should generally watch a share for at least a month on your watchlist before buying it.

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