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Learning path 5 of 9

Investing and portfolio management

Build and run a portfolio you can stick with. Compounding, diversification, asset allocation, funds, rebalancing and the behaviour that undoes good plans.

Level
Beginner to intermediate
Lessons
24 ready
Time
About 2 h 19 min published, roughly 10 hours when complete
Module tests
5 of 5 modules

24 lessons in this path. Progress is saved in your browser as you go.

0 of 24
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Picking good companies is only part of investing. How much you put in each, how you spread risk, how you react to a fall, and whether you stick to a plan matter at least as much.

This path covers the practical side of long-term investing: setting goals, the arithmetic of compounding, diversification and asset allocation, index funds and mutual funds, and the behavioural traps that catch experienced investors as easily as beginners.

Who this path is for

Learners who have finished the foundations path and want to invest for the long term, whether in individual shares or through funds.

What you will be able to do

  • Separate investing from speculation and match investments to goals and time horizons.
  • Explain compounding, diversification and asset allocation with numbers.
  • Compare index funds, ETFs and actively managed mutual funds.
  • Recognise behavioural biases and build habits that limit their damage.

Before you start

  • Stock market foundations: Portfolio decisions assume you understand shares, market cycles and the basic risks of owning them.

The route, module by module

Take the modules in this order. Filled stops are lessons you have completed; dashed stops are still being written.

  1. Module 1Goals, time horizons and speculation

    What separates investing from speculation, how to set goals with time horizons, and why risk tolerance and risk capacity are different things.

    1. Investing compared with speculation6 min
    2. Investment goals and time horizons6 min
    3. Risk tolerance and risk capacity5 min
    4. Module test: Goals, time horizons and speculation10 questions

  2. Module 2Building a portfolio

    Diversification, concentration risk, asset allocation across equity and fixed income, correlation in practice, beta, and position sizing.

    1. Diversification6 min
    2. Equity and fixed income6 min
    3. Asset allocation6 min
    4. Beta and market risk6 min
    5. Position sizing and concentration6 min
    6. Module test: Building a portfolio10 questions

  3. Module 3Mutual funds, index funds, ETFs, REITs and InvITs

    How pooled investments work, active compared with passive funds, expense ratios and tracking error, and the basics of REITs and InvITs.

    1. Mutual fund fundamentals6 min
    2. Index funds and ETFs6 min
    3. Expense ratios and tracking error5 min
    4. Active and passive funds6 min
    5. REITs and InvITs5 min
    6. Module test: Mutual funds, index funds, ETFs, REITs and InvITs10 questions

  4. Module 4Running a portfolio over time

    Volatility, maximum drawdown, sequence of returns, rebalancing, benchmarks, performance measurement, investment policy statements and periodic reviews.

    1. Volatility and maximum drawdown5 min
    2. Sequence of returns5 min
    3. Portfolio rebalancing5 min
    4. Benchmarks and measuring performance6 min
    5. Writing an investment policy statement6 min
    6. Tax on shares, funds and other investments6 min
    7. Module test: Running a portfolio over time10 questions

  5. Module 5Behaviour, biases and decisions

    Loss aversion, confirmation bias, overconfidence, herding, recency bias, emotional decisions, and judging decisions separately from outcomes.

    1. Loss aversion, confirmation bias and overconfidence6 min
    2. Herd behaviour and recency bias6 min
    3. Emotional decision-making6 min
    4. Good decisions and good outcomes6 min
    5. Investment mistakes and lessons from history7 min
    6. Module test: Behaviour, biases and decisions10 questions
  • Fundamental analysisJudge a business on its merits. Business models, growth, profitability, debt, valuation ratios, intrinsic value and the red flags of poor governance.
  • Scams, myths and investor protectionHow investment scams work, how to check a claim against official sources, and what to do if you think you have been targeted.