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How Many Stocks Should You Have in Your Investment Portfolio?
By The Smart Investor  •  September 4, 2020
The topic of portfolio construction can be a tricky one. After all, investing is an intensely personal endeavour where each investor has his own style and preference. There are also a wide variety of popular investing styles out there, namely growth investingincome investing and value investing. Each investment style has its merits and drawbacks. Despite the differences, there are some common questions that investors have to answer. A frequent query is about how many stocks you should hold in your portfolio. Should you be more concentrated in a few good names such as blue chips, or be broadly diversified to reduce risk? Let’s explore this topic further.

“Adequate” diversification

A key feature of your portfolio should be diversification. “Diversification” here does not just involve a specific number of stocks, but emphasizes exposure to different industries and geographies. For instance, an investor who buys a variety of banks such as DBS Group Holdings Ltd...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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