Should You Reinvest Investment Dividends and Profits?

Should you add to successful fund positions or initiate new ones? And is there an ideal number of holdings within a portfolio?

Danielle Levy 28 March, 2017 | 5:56PM
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Stock markets across the globe have proved robust over the past six months, in spite of the political headwinds. This has created a positive dilemma for many investors: namely, where to invest the proceeds from a growing portfolio. Should you continue to back your winners or take profits and look for value elsewhere in the market?

Run the winners and cut the losers in your portfolio

Nathan Sweeney, senior investment manager at multi-manager Architas, says investors should first consider whether the trend or factor that has driven returns is likely to continue. If not, it could be a good time to take profits on the underlying fund or stock.

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About Author

Danielle Levy  is a freelance journalist specialising in investment writing for Morningstar.co.uk

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