Introduction to Creating a Portfolio

Building a portfolio entails combining different investments to work toward your financial goals. You certainly want to get the highest return, but how much risk are you willing to take, and how much risk can you take to achieve those goals?

Asset allocation does not assure a profit or protect against a loss. Therefore, you should consider factors such as your risk tolerance, risk aversion, and available and future resources, as well as inflation and taxes to create just the right mix of investments. You also need to know what types of investments meet your needs.