Portfolio Strategy
Building a Diversified Portfolio on PSX
PSX PORTFOLIOS Team
9 min read
The Importance of Diversification
Diversification is a key strategy to manage risk and optimize returns in your investment portfolio. It means spreading your investments across different assets to reduce exposure to any single investment.
Diversification Strategies
1. Sector Diversification
Invest across multiple sectors:
- Banking & Financial Services
- Oil & Gas Exploration
- Cement & Construction
- Textiles & Apparel
- Technology & Telecom
- Consumer Goods
- Pharmaceuticals
2. Market Cap Diversification
Balance between:
- Blue Chips: Stable, established companies
- Mid-Caps: Growth potential with moderate risk
- Small-Caps: High growth potential, higher risk
3. Risk-Return Balance
- Determine your risk tolerance
- Mix conservative and aggressive investments
- Regularly rebalance your portfolio
- Consider your investment timeline
Monitoring Your Portfolio
Track your diversified portfolio easily with PSX PORTFOLIOS. View holdings distribution, sector allocation, and performance metrics all in one place.