Manage My Portfolio
At Scottrade, we're committed to giving you all the information and support you need to build and manage a portfolio that helps you work toward your unique investing goals. The articles below discuss different portfolio management tactics and objectives you may want to keep in mind as you think about what your investment strategy should look like. When you're ready, you can use Scottrade Portfolio Review Tool to select an investment strategy that's right for you and apply that strategy to your portfolio.
Putting together a portfolio of securities is like building a home. Even if a house is filled with beautiful rooms that may not be enough: All those rooms need to work together to form a pleasing and useful whole. Investment portfolios are the same way. There are five steps to building a personalized portfolio of investments that work together as a team.
Life is about trade-offs, and so is investing. The investment trade-off is between risk and return. Getting a return on an investment means accepting risk, at least to some extent. But what, exactly, is risk? And how do you know how much of it can you tolerate?
Once you've defined your investment goals and thought about how much risk you can take, the next step is to determine your portfolio's asset allocation. When we talk about “asset allocation,” we are referring to the way your portfolio is diversified across asset classes, such as stocks, bonds, and cash.
One of the strategies that can be used in managing a portfolio is the core vs. noncore investment strategy (also called the core-and-satellite strategy). A core holding is just what it sounds like: It's the central part—or maybe even the only part--of your portfolio.
Once you've selected your asset allocation strategy, you've done most of the hard work. Now, you just need to select some investments to get you where you need to go. While some investors will choose individual stocks and bonds, others may gravitate more toward funds.
The problem with owning too many funds and stocks is that one can easily lose sight of the forest for the trees. Investors may start out with a clear investment goal and a portfolio tailored to their objectives, and turn into a collector who has forgotten what their goals are. The articles in this section address the task of knowing when enough is enough.
Investments often come in different shapes and packages, but many have similar content. For instance, two seemingly different mutual funds can own the same stocks. In September 2012, for example, the top 10 holdings of two separate Fidelity funds had five stocks in common. The articles in this section discuss a few different ways you may be able to avoid stock overlap in your portfolio.
Investment portfolios require regular reviews. You need to supervise your portfolio - just as a manager supervises employees - to make sure it stays on track. This first part of the How to Monitor Your Portfolio article series focuses on how to monitor and modify your fund holdings when necessary.
The second part of the How to Monitor Your Portfolio article series focuses on how to monitor and modify your stock holdings when necessary. The articles in this section address the criteria you should be monitoring and what it means when your stock undergoes major changes within that set criteria.
If an investment is successful, naturally you want to stick with it. The last thing you want to do is sell some of their winners to put more money in investments that aren't doing as well. No matter how unnatural this practice, called rebalancing, seems however, it's an essential part of managing an investment portfolio.
Investing requires a trade-off. You have to give up safety and take on risk to achieve better returns. Modern Portfolio Theory tries to make the most of the trade-off, illustrating how to generate as much return as possible for the least amount of risk.