1. Invest Regularly
To keep an investment portfolio growing requires regular deposits into the investment account. It can be advisable to keep an automatic withdrawal from the investor’s checking or savings account every month so that the investment portfolio keeps growing. If the investor is managing their portfolio themselves they also need to regularly invest the cash funds in their portfolio for the maximum benefit.
2. Dividend Stocks
Many investors look over dividend stocks because they don’t have the gains that other stocks do but a solid dividend stock can actually be extremely valuable. Investors looking to round out their portfolio will often do well by adding a few historically well-performing dividend stocks into their mix.
3. Examine Your Fees
Brokerage fees can be quite substantial depending on the types of trades an investor is doing and switching brokerages can save an investor a lot of money. There are many online brokerages available and many of them have extremely good rates. Every once in a while an investor should investigate other brokerage options to see if there are better options available for them.
4. Keep Balanced
It’s important for an investor to regularly inspect their portfolio to make sure that no single stock or type of investment has begun dominating their portfolio. This can occur if a single stock or investment has done particularly well. While this may initially seem like a good thing it is important to take methods to balance the portfolio again as soon as possible.
5. Always Be Researching
Keeping on top of the new financial news is very important to an investor. Investors should read up on financial news and strategies whenever possible, and if possible they should make it a part of their day. This can let them become aware of the newest developments and opportunities as they arise. There are many online magazines and subscriptions that can keep an investor abreast of all the most recent financial news.
Knowing other investors and discussing the market with them can lead to great insights and opportunities. Networking is extremely important in the financial industry and almost always leads to good things.
7. Mutual Funds
Mutual funds are often overlooked by investors who are seeking to manage their own funds but they can be a good addition to a portfolio that wants to balance their risk. Mutual funds shouldn’t be ignored as a good investment vehicle for the right conditions.
8. Alternate Investments
Investors who want to maximize their returns can consider alternate investments as well. There are many alternative investments such as lending clubs that have been showing good returns and have a sound financial plan behind them.
9. Financial Planners
Not everyone needs to manage their own investment portfolio. If managing their portfolio becomes too much for an investor, an investor can consider switching to a managed portfolio or consulting a financial planner.
10. Retirement Accounts
Just because an investor has a well-diversified portfolio doesn’t mean they can forget about their retirement accounts. Retirement accounts have many benefits over traditional investment accounts and most investors will do well by investing in their retirement first before investing in other financial options.
This piece was composed by Patrick Ellington, a freelance writer based in Little Rock, Arkansas. Patrick enjoys writing about investment, personal finance, savings, debt management, accounting jobs, stocks and bonds, banking and other related matters; those looking to break into the world of finance may want to view the accounting jobs with moneyjobs.com.