TO set up a successful investment portfolio, a customer must first know how big a gamble he is willing to take, according to Bruno Lee Kam-wing of Fidelity Investments.
Once the risk position has been decided on, a package can be created to fit the requirements.
Mr Lee, Fidelity's director of direct retail business, said in general there were two different portfolios which could be suggested to a person wishing to invest their bonus - one for the aggressive investor and another for the more conservative type who took a long-term view.
'Obviously, we will check if the potential investor has put some money aside for tax purposes and for expenditure over the next three to six months,' he said. 'Once that has been established, we will check if the customer is a long-term investor willing to put money aside for three to five years.' Investment opportunities would be chosen depending on the amount of risk considered acceptable by the investor.
A more aggressive investor would be 'looking for a higher return and would have a strong stomach for the ups and downs of the stock market', Mr Lee said.
This would involve putting 40 per cent of funds in a globally diversified fund such as the Fidelity International Fund which invested in equity markets around the world.
Since its launch on December 31, 1991, the fund had registered a 13.2 per cent annualised growth rate.