facebookWhat would be a better option - owning more stocks at lesser capital invested per stock or lesser stocks with more capital invested per stocks? - Seedly

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Anonymous

18 May 2020

General Investing

What would be a better option - owning more stocks at lesser capital invested per stock or lesser stocks with more capital invested per stocks?

For example, will owning 10 different stocks with say $500 invested in each stock OR owning 5 different stocks with say $1000 invested in each stock be a more efficient approach? Should I focus on the number counters in my portfolio OR should I instead focus on increasing the amount invested in each of my few stocks?

Discussion (2)

What are your thoughts?

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Elijah Lee

18 May 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

I'd take $1000 over 5 stocks, but 5 stocks that I have researched and chosen carefully.

Not forgetting that when you're invested, you still have to monitor your investments regularly. Having lesser counters to monitor is a plus.

Diversification is always a good thing for risk reduction,

I'd recommend passive indexing stock ETFs:

https://seedly.sg/questions/what-is-your-genera...

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