What you need in your in­vest­ment port­fo­lio

CityPress - - Business -

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.

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