Thursday

Investment Planner Campaigns to Educate Individual Investors About the Benefits of Managing Their Own Portfolio

The investment environment has changed drastically and passive investing is no longer an acceptable alternative. Many Investors can use guidance in investment planning decisions. One of those decisions is which investment vehicles best suit the individual investor’s needs. Individual stocks, exchange traded funds (ETFs), and mutual funds are the most popular vehicles or tools for investing.

Investing in individual stocks gives the investor the most flexibility to target specific companies that fit the individual’s particular investment style. It also makes it possible to own the very best companies or opportunities. Low commission rates make transaction costs and expenses another advantage. The main disadvantage is the need to properly diversify a portfolio to the point of reducing company specific risk, yet not over diversify to the point of the portfolio being similar to a market index fund. Both under diversification and over diversification are cause for poor portfolio performance. Continue…