HOW TO CREATE A DIVERSIFIED EQUITY PORTFOLIO

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How to create a diversified equity portfolio
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Introduction

• Diversification is the battle cry for many
  financial planners and fund managers. When the
  market is booming, and the indexes are on their
  way up, it may seem foolish to be in anything but
  equities.
• But, thats what they say about investments, you
  can never be sure of what the market will do at
  any given moment. This is exactly why a well
  diversified portfolio is of utmost importance.

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Here are some diversification tips

• 1) Spread the wealthEquities are wonderful, but
  it is important to remember that you must not put
  all your investment in one stock or one sector.
  Create your own portfolio by investing in a
  handful of trusted companies.
• Its the best way to understand the companies
  that you are investing in and select a handful of
  companies that are well known.

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• 2) Consider index or bond funds
• You can also consider adding index funds or fixed
  income funds to the mix. It will give you a
  better diversification.
• Investing in securities that track various
  indexes make a wonderful long term
  diversification investment for your portfolio. By
  adding fixed income solutions, your portfolio is
  further hedged against a volatile and uncertain
  market.

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• 3) Keep building
• It is all good idea to add to your investments on
  a regular basis.
• Lump sum investment might sound like a good idea,
  but in reality, its always better to space them
  out and keep building a portfolio gradually.

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• 4) Know when to get out
• Stay current with your investment portfolio and
  always track the overall market conditions. Know
  what is happening to the companies you invest in.
  Youll know exactly when to get out.
• It is hence important to take a disciplined
  approach and use diversification as well as buy
  and hold and averaging strategies and you will
  realize that your investments are rewarding
  even in the worst times!

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• Dubai based leading investment company KEFHoldings
  , providing services for investment in UAE and
  India.

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Contact Us

• KEF HOLDINGS
• 501, 5th Floor Precinct Building 5 Dubai
  InternationalFinancial Center (DIFC)P.O. Box
  506765,Dubai UAE971 4 437 3000F 971 4 421
  427E kef_at_kefholdings.com
• Website www.kefholdings.com
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