What you need in your investment portfolio
To ensure your investment portfolio is balanced and diversified, you should have the following:
Blue chip stocks: These are the top 20 companies that have solid track records and are usually household names. Current examples include BHP Billiton, MTN, Sasol and SABMiller.
The golden ticket: Although risky, small companies offer the highest potential for growth over the long term at a low base cost, this type of company should not comprise more than 10% to 15% of your investment portfolio.
Established companies that offer growth: These companies have established reputations but still offer considerable potential for growth and are not yet part of the top 20 on the JSE. Current examples include Kumba Iron Ore and Mondi.