A journalism graduate from the California State University, Frank Mamola worked at Merrill Lynch and KTUL-TV. Frank Mamola serves as a financial advisor at Edward Jones, a firm that manages clients’ assets by building and managing investment portfolios.
An investment portfolio is a group of investments owned by an investor. Assets used in an investment portfolio include exchange-traded funds, mutual funds, stocks, and bonds. When creating a portfolio, one of the most critical factors to consider is risk tolerance, which refers to the willingness to tolerate financial risks in exchange for the chance of better returns.
Risk tolerance is determined by the amount of time an investor has before reaching a financial milestone such as retirement and how the investor handles the rise and fall of the market. If the target is many years out, an investor has more flexibility to ride out the market's peaks and lows. In turn, an investor hopes to see an overall upward trend in the market and may book profit over the investment.
Another factor to consider when building an investment portfolio is the estimated profit, representing the yield on an asset. The yield is in percentage and depends on the current market value or the amount invested. For instance, a stock purchased at 10 USD and currently trading at 15 USD has a 50 percent yield.
