Step 5 - Minimize Investment Costs

Cutting costs is one of the best ways to improve the performance of an investment portfolio. When you cut investment fees, that is money that goes directly into your pocket instead of someone else's.



This step involves considering the wide array of investment vehicles and their role in a well diversified portfolio. Each year, new and variegated investment products enter the market, each with endemic characteristics. ETFs, mutual funds, stocks and bonds are the most common investment types, but more exotic vehicles like options, futures, private partnerships, hard assets and real estate are worthy of consideration.

Once an investor has considered the risks and merits of each investment vehicle, she/he can consider individual opportunities and characteristics. The goal is to capture the needed asset class for a portfolio in the most efficient and profitable manner.