Friday, July 20, 2007

How many stocks should you own?

Buying a large number of stocks is time-consuming and will distract you from focusing on the absolute best stocks. Most investors simply cannot keep track of a large number of stocks, so concentrate on just a few of the best. Use this simple guideline to determine the number of stocks to own:
Less than Rs. 20,000 1 or 2 stocks
Rs. 20,000 to Rs. 50,000 2 or 3 stocks
Rs. 50,000 to Rs. 2,00,000 3 to 5 stocks
Rs. 2,00,000 to Rs. 5,00,000 5 to 7 stocks
Rs. 5,00,000 or more 7 to 10 stocks

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