The beta coefficient of the portfolio is the weighted average of the beta coefficient of each stock, specifically
Portfolio beta =1× 20%+20×10%+91× 30%+52× 40% = 50.3.
What is portfolio investment?
When building a portfolio, please use the formula of "100 minus the current age". This formula means that if you are 60 years old, you should invest at least 40% of your money in the stock market or stock funds; If you are 30 years old, you should put at least 70% of your money into the stock market.
Based on the principle of risk diversification, it is necessary to disperse funds into different investment projects; In specific investment projects, it is also necessary to diversify the assets to make the investment ratio just right. Remember, any best portfolio must spread risks. If you are a novice investor and have only a few thousand dollars in your hand, this principle may not apply for the time being; But with the increase of age and income, it is absolutely wise to spread the money in different fields. At this time, the formula of "one hundred MINUS the present age" is very practical.
According to the rough classification of portfolio, there are three different models to choose from, namely, active, moderate and conservative. Age is an important consideration when deciding which clock mode to adopt. Everyone has different needs, so there is no fixed portfolio. You have to design it according to your personal situation.
20 to 30 years old, because retirement is still far away and the risk tolerance is the strongest, you can adopt the active growth investment model. Although it is not easy to have money to invest in this period because of preparing for marriage, buying a house and buying durable necessities, we should try our best to invest. According to the formula of "100 minus current age", you can invest 70% to 80% of your money in various securities. This part of the investment can be regrouped, such as investing in 20% common stocks, 20% funds and the remaining 20% time deposits or bonds.
From the age of 30 to 50, during this period, the number of family members is gradually increasing, and the degree of taking risks needs to be relatively conservative, but the goal is still to increase the principal as soon as possible. During this period, at least 50% to 60% of the funds should be invested in securities, and the remaining 40% should be invested in investment targets with fixed income. The funds for securities investment can be allocated as 40% for stocks, 65,438+00% for funds and 65,438+00% for government bonds. The part of investment in fixed-income investment targets should also be dispersed. The purpose of this investment portfolio is to keep the principal, gain income, and also leave some cash for family daily life.
From 50 to 60 years old, children have reached adulthood, which is the peak period of making money, but we should control risks and concentrate on saving vigorously. However, the investment rule of "100 minus age" still applies. At least 40% of the funds will be invested in securities, and 60% will be invested in investment targets with fixed income. The goal of this portfolio is to maintain the function of capital preservation and leave some cash for a rainy day before retirement.
Over the age of 65, most investors will deposit most of their funds in relatively safe fixed-income investment targets during this period, and only invest a small amount of funds in stocks to resist inflation and maintain the purchasing power of funds. So 60% of the funds can be invested in bonds or fixed-income funds, 30% in stocks, and 65,438+00% in bank savings or other targets.