Laggards in an equity portfolio

laggards in an equity portfolio

Level - INTERMEDIATE

An aversion to loss prevents most investors from focusing on bad investments. Learn how to deploy your money smartly by cleaning up the laggards in your equity portfolio!

AUTHOR(S): Shreeja Thirani

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Laggards in an Equity Portfolio

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    1.Which of these decisions are common to investors, and can cause the most harm to portfolio value?



  • Timing the market wrong
  • Selecting stocks that end up performing poorly
  • Holding onto bad investments due to an aversion to loss
  • 2.The key steps in weeding out bad investments are to



  • Wait for the market to go up; sell ; make profits
  • Identify; sell; and redeploy in the same asset at a lower price
  • Identify and acknowledge; sell; and redeploy in other assets
  • 3.If an investment is performing poorly consistently, then the right course of action is to



  • Ignore it and wait for market to pick up
  • Buy more of the poorly performing shares to reduce the average cost
  • Exit the investment to cut losses
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Tanuja Vyas 2 years ago

Excellent Video !

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