Christmas Wishlist
Have you ever wondered...
Imagine you’re an Investment Manager creating a portfolio for your clients! From the 12 companies provided, choose 6 to include on your Wishlist. Remember, the goal is to build a diverse portfolio that balances risk and aims for long-term growth.
Your Task!
Decide which 6 companies make your Christmas Wishlist and
explain why you picked them. Think about:
- Risk
and Reward: Are the companies stable or high-risk with potential high
returns?
- Diversity:
Are you covering different industries or sticking to just a few?
- Objectives:
Does your Wishlist reflect the goals of a good portfolio, like steady
growth or high ethical standards?
Remember: Don’t put all your eggs in one basket! A
strong portfolio is diverse, strategic, and tailored to specific objectives.
Get creative and think like an Investment Manager!
What is a Portfolio?
A portfolio is a mix of investments designed to help money grow over time while reducing risk. Investment Managers don’t put all their money into one company or sector; instead, they spread it across different investments. This way, if one investment doesn’t do well, others can offset the loss.
The idea behind a portfolio is diversification—In the Investment world investments are spread across different types of assets, such as different Stocks (companies) Bonds, and Real Estate, so that if one investment doesn’t perform well, others might perform better. This helps reduce the overall risk of the portfolio.
Investment managers carefully select which assets to include in a portfolio based on the investor’s goals, risk tolerance, and time horizon (how long they plan to invest). This strategy helps grow money over time while minimising potential losses.