4 Investment Rules of Thumb

Investing can seem complicated, but common portfolio guidelines can be a good starting point

Amy C. Arnott 2 February, 2021 | 11:46AM
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Illustration of a checklist and pie chart

Investing can be incredibly complicated, with hundreds of thousands of investment choices that can be combined in nearly infinite variations. The sheer number of options available -and the high stakes involved in getting decisions right - can make the process overwhelming.

That’s one reason why rules of thumb can be useful. They’re a way of cutting through complexity and helping investors make decisions more quickly without getting bogged down in endless questions about “what if” or “what’s next".  

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Amy C. Arnott  Amy C. Arnott, CFA, is director of securities analysis for Morningstar.