Traditionally, budding investors have faced the dilemma of not having enough money to buy into a sensible portfolio strategy straight away. Robo-advisers and now longer-established platforms offer ready-made risk-tailored portfolios but many investors are of a mind to be more self-directed.
Fractional ownership options have a future but for my own Isa, started with cash saved in the pandemic, I’m taking a more old-fashioned approach of building towards my ideal portfolio. At a high level, my portfolio strategy is close to where I want it, but I am still some way off having exposure to all the themes I like within asset classes.
One of my disciplines is to have a minimum size for each holding, which means the portfolio is still missing some key ingredients to have the right risk-to-reward profile for me. The fact I have limited resources and must make decisions means the opportunity costs (what I miss out on by choosing one investment over another when in an ideal world I'd buy both) can be felt keenly.