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Based on your risk tolerance level we can form 3 basic kinds of portfolios.

1. Aggressive Portfolio - For individuals with high risk tolerance

2. Balanced Portfolio - For individuals with average risk tolerance

3. Conservative Portfolio - For individuals with low risk tolerance

You have to decide in which category you would fall into. It is not mandatory to choose only these 3 portfolio's. You can opt to be somewhere between an aggressive and balanced portfolio wherein your investments would neither fall under aggressive category nor would they fall under balanced.

Your investment objective & horizon and risk taking ability would determine the kind of portfolio that would suit you.

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13y ago

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