How do I Identify Investment Holdings?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 01 January 2019
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Identifying the right mix of investment holdings for your portfolio is an important task if you are to reach your financial goals. Spending time collecting investments that do not provide the return you desire or that don’t fit in well with your future plans, will only slow you down and possibly derail your future financial stability. Here are some examples of the options you can incorporate into your investment portfolio, based on what you want to accomplish.

A good place to begin your investing activity is with a foundation of investments that are relatively stable. These can include a basic savings account, low yield bonds, and a few Certificates of Deposit at your local bank. While none of these investment holdings will generate a high return, they are much less volatile than other investments. Your chances of making a small but steady return without encountering any type of loss is very good with holdings of this nature.

With the foundation of your portfolio in place, you can begin to expand your investment holdings. Many people choose to go with programs such as a 401K and other investments that can be funded with payroll deductions. Often, the Human Resources Director at your place of business can tell you more about the retirement fund management process for savings and investment opportunities through work. While the yield is likely to be higher than your foundation of safe investments, the degree of risk is still relatively low in most cases.


If you have resources that are not required for other purposes, you may want to consider a little speculation in the stock market. Stocks, bonds, and commodities are all examples of investment holdings that have the potential for a high yield. Keep in mind that the greater the opportunity for gains, the greater the risk or volatility involved. Talk with a financial advisor before beginning to invest directly into the various financial markets, and come up with a plan that is in keeping with your goals and your comfort level.

When choosing investment holdings, take the time to understand the potential associated with each one. Doing so helps to assure you understand there is a possibility of losing money as well as the chance to reap significant earnings for your effort. Move as slowly or as rapidly as you are comfortable, and don’t attempt to keep up with friends or relatives in this type of endeavor. In the end, you can amass the type of investment holdings that provide you with financial security, but not a lot of sleepless nights worrying about your investments.



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