Rules of Portfolio Optimization

Following are the basic Rules of Portfolio Optimization: 
  1. Rule #1: Investment should be of the Type, "LONG TERM". 
  2. Rule #2: Portfolio has to be "Reviewed once every month" (Needs to be re-visited). 
  3. Rule #3: Portfolio has to be "Rebalanced" at regular intervals (Advisable once a Month). 
  4. Rule #4: Ensure to pick up the Stock when it is "Rightly Priced" (Avoid highly priced stocks). 
  5. Rule #5: Gradually "Diversify your Portfolio" covering major sectors (say 20 scripts of 5% each). 
Any new rules we come across will be added to these RULES. 

Rebalancing has not been considered this week as we need to have good examples to explain the same.

Any questions you have, please do not hesitate to put in your comments so that I can take them up in the following articles. 

Stay tuned, following are the items that will get published in the following weeks: 
  • What is Rebalancing the Portfolio? 
  • First Optimized Portfolio from Indian Stocks. 
  • 1st Monthly Review of DOW Optimized Portfolio - PU001-04252021.

Comments

Post a Comment