1 Answer

Things You'll Need
Computer
Internet Connection
Broker
Banker

Instructions
1
Develop your goals for the portfolio. What is it you want to gain by creating the collection of financial investments? Knowing whether you want to create a revenue stream for later years or develop a revenue stream that provides dividends in the here and now will influence the types of investments you choose.

2
Evaluate your level of comfort when it comes to risk. Some people are by nature risk takers while others tend to be more conservative. There are investment options that will complement both extremes as well as any mix in between. Understanding the level of risk you are willing to live with will go a long way in helping to find the right types of investments for your situation.

3
Learn about the many types of investments. You may choose from such items as stock options, mutual funds, various types of bond issues, or even currency trading as part of your portfolio. Chances are several of these different classes of investments will appeal to you.

4
Set limits on how much you can invest. Investing should be done with net income that is not earmarked for food, clothing, shelter and other common budget items. Look at what you have left over after taking care of your other financial commitments and only utilize that for your investing activity.

5
Get professional advice. Especially for newcomers, you need the counsel of someone with experience in the financial world. Your local bank probably has at least one officer who can offer constructive advice on investment opportunities. Working with a broker is also an important option.

6
Diversify your investments. You may want to go with a couple of stock options related to different industries, toss in a municipal bond or two, and perhaps put money into a low-risk mutual fund program. By diversifying your holdings, you help to create a situation where one investment may help to offset a temporary loss you may experience with another investment.

Read more: How to Create a Portfolio | eHow http://www.ehow.com/how_4424977_create-portfolio.html#ixzz2WELuXOWl