The Portfolio Multiverse is a concept in which an individual would plan, manage and organise his/her investment and trading portfolios based on each portfolio’s objective(s) and characteristics, and the individual’s risk appetite, risk tolerance, knowledge and allowable time for the portfolios, asset classes and/or financial instruments used in it (that is a mouthful, I must admit). This concept stemmed from my mental accounting bias and personally I felt it is easy to view one’s overall investment/trading picture.
Is it difficult to start off this Portfolio Multiverse? Not really. In fact, if you are a salaried person and have started out investing using your disposable income, you already have a Portfolio Multiverse in place. For common folks like you and me, we can start off our Portfolio Multiverse with three basic portfolios.
The Three Basic Portfolios
For most Singaporeans, the first basic portfolio to start with is their almost risk-free ......