New Member – New Investor

[Joanne Horgan]

New to investing on stock exchange except for SAYE shares. I’m mostly risk averse but like the ideas behind HYP. However having joined half way through latest portfolio I’m playing catch-up. Could you point me in the right direction to understand how the latest HYP portfolio works (already made a bit of a mistake by buying both Shell and BP by buying from listing of shares to date rather than reading back issues but I think I can rectify this) is the portfolio built up over year or a longer period?

[Stephen Bland]

The portfolio is built up by a new selection in a new sector each month. Occasionally that new selection may consist of two shares in the same sector – which I term Multiple Choice – if I feel that this suits the portfolio under construction. There is a minimum of 15 sectors and usually no more than 20 in a portfolio though the upper limit is not fixed. Thus it will normally take 15-20 months to complete the construction.

I picked both RDSB and BP. as my oil sector MC for HYP7 so as you are catching up and following this latest portfolio, you should own both. Note that where I suggest MC for a sector, you must split your unit sector investment equally between them so as not to overweight it. So if for example you are catching up with an investment of £5,000 per sector, then you should put £2,500 in each of RDSB and BP. so that the total invested in oils is still £5,000, same as the other sectors.

Hope this helps but please ask if you have any futher queries.

[Author]

Posts