• Stephanie Brennan

How many stocks should I have in my portfolio?


In the investment space, you will hear the word ‘diversification’ a lot! Diversification is where you buy many stocks to spread your risk. The idea is that if you own a small volume of multiple different stocks, then the probability that they all drop in value is lower, so therefore, your risk is also lower. 


However, if you own a high volume of a small amount stocks and only a couple go up in value, then the stocks that have lost value will bring down the overall (average) return on your portfolio. 


Excessive diversification is for investors that aren’t yet confident enough in their investment ability. It’s often better to focus on a select 10-20 stocks that you are interested in, because this will mean you’re more interested in keeping up to date with the stock and be more attune to when it’s time to buy or sell. This helps to diversify your portfolio without diluting your returns through too much diversification.


Please know, the value of investments can go up as well as down and you may receive back less than your original investment, meaning, when investing your capital is at risk.

Disclaimer: At Evarvest we believe in making investing and investment education more accessible, but we don’t provide investment advice and individual investors should make their own decisions. While we try our best, we cannot ensure the accuracy of the information we provide.


This content is copyright protected by Evarvest Limited (12544579). Evarvest Limited refers to the Evarvest network and/or one or more of its subsidiaries, each of which is a separate legal entity. 

Evarvest_mixed@2x.png
© Copyright 2020 by Evarvest Limited

Evarvest Limited is an appointed representative (FCA firm reference No. 928416) of WealthKernel Limited. WealthKernel Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 723719).

The information on our website or mobile application is not intended to attract or offer our services to anyone in any jurisdiction in which Evarvest is not regulated or able to market its services.

At Evarvest we believe in making investing and investment education more accessible, but we don’t provide investment advice and individual investors should make their own decisions.

Any and all information produced by Evarvest Limited (Company No. 12544579) is copyright protected, and while we try our best, we cannot ensure the accuracy of the information we provide.

Please know, the value of investments can go up as well as down and you may receive back less than your original investment. Further, the tax on your investments depends on your individual circumstances and may be subject to change.  

Evarvest Limited refers to the Evarvest network and / or one or more of its subsidiaries, each of which is a separate legal entity.