Structure of Portfolio 2010-2011

[shipibo]

A Chairde,

Was wondering what your opinions were on Portfolio structures and percentages:


Some items I was thinking metals , stocks , ETFs , Cash and normal funds ( Standard Life, caledonian etc ...)


What are your opinions on risk balance (how much low, medium and high risk)


Anything i have missed and you beleive is relevant, please add to thread

 

[jpd]

impossible to give an opinion without more information on age, income, purpose of investment, life of investment, other investments, dependants, earning prospects, future plans - and lots more

 

[mercman]

If you are planning investing into normal funds, read this thread: http://www.askaboutmoney.com/showthread.php?t=144230. This should assist you in making a decision. Without been aware of your circumstances, ETFs are the IN products at present. As long as you aware that i is near impossible to beat the market.

 

[jpd]

beware of IN products - property was the IN product a few years ago

 

[marksa]

For 2011, diversification is the key. so at least if something drops it is only a portion of your portfolio.

Keep the correlation low, so in other words if one security drops, something else goes up. e.g. hold shares in drinks companies, a basket of agri commodities ETF, shares in Oil companies, financial stocks (non-Ireland). It is extremely unlikely that all of these would move in the same direction at the same time.

You should spread the assets geographically as well. Avoid putting money into loss-making companies to get rich quick as it rarely pays off unless you are an insider. You should avoid exposure to Ireland, not justs because of the current state of Ireland, but also because you already have enough exposure to it in that you are living here, pension most likely overweight in Ireland etc.