Building Your First Portfolio

Turn a few good choices into a complete, balanced portfolio.

1. Core and Satellite — A core-and-satellite portfolio puts most of your money in broad, low-cost funds and a smaller slice in ideas you pick yourself. Here is how it works and how to size each part.
2. How Many Holdings Is Enough? — Too few holdings leaves you exposed to one company’s bad news; too many and you are just paying to own an index. Here is what research says about diversification and how to decide.
3. Picking Funds for Your Core — Your core funds do most of the work, so choose them carefully. Here is what to look for: broad coverage, low costs, low turnover and a simple structure, plus how fees add up over decades.
4. Adding Individual Stocks Safely — Individual stocks can add interest and upside to a portfolio, as long as they stay the right size. Here is how to add them with limits, a reason for owning each one and a plan for when things go wrong.
5. Measuring Yourself Against a Benchmark — A benchmark tells you whether your choices are adding value or whether a simple index fund would have done better. Here is how to pick one and compare fairly.
6. Your One-Page Investment Plan — An investment plan puts your goals, mix, funds and rules on one page, so you know what to do in good markets and bad. Here is a simple template you can fill in today.