What Is the Ideal Number of Stocks to Have in a Portfolio?
While it might seem that many sources have an opinion about the right number of stocks to own in a portfolio, there is no single correct answer to this question.
The correct number of stocks to hold in your portfolio depends on many individual factors, from your country of residence to your investment time horizon, the market conditions, and your propensity for keeping up to date on the financial news.
Key Takeaways
- Diversification is critical to achieving long-term returns while limiting risk.
- The precise number of investments in a diversified portfolio depends on the individual.
- Redundancy is usually inefficient. That is, having many stocks that pay high dividends or many growth stocks increases your costs while doing little to…
