Portfolio construction

Dealing with the practical concerns

There are a few routes available if you want to take the plunge and start building an investment portfolio – and, as always, there are trade-offs involved. ⚖️

The main tradeoff is between convenience and fees. If you go it alone and select your own investments, you won’t have to pay a management fee – but you’ll also have to dedicate more of your own time.

Because asset prices move over time, even long-term investors periodically take time to check the performance of their portfolio parts – often in order to rebalance 🔁 back to the original allocation of assets they decided worked for them.

At Wealthyhood, we’re automating the whole process for you, so you can create the portfolio that matches your preferences, track its performance, finetune it and rebalance whenever you want. 🎯

That’s it for our learning guide on portfolio construction.

In this guide, you’ve learned:

🔹 Correlation is king. 👑 Splitting your money across assets that move independently will boost your risk-adjusted returns.

🔹 There are lots of different ways to split your investments; some conservative, some more aggressive.

🔹 When measuring how well your investments have performed, you should make sure you check the returns compared with the risk-free rate of return.

🔹 You can save money on advisor fees by building your own DIY portfolio and rebalancing it periodically. We got your back! 💪🏼

We’ve enjoyed introducing you to the world of portfolio construction. Be sure to check out the other learning guides to ace your game 🏆 – and while you’re at it, make sure you stay classy.

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Keep in mind that when you invest, your capital is at risk.