Hi everyone,

I got thinking about a revised growth portfolio for consideration.  We have an excellent growth portfolio under the Portfolios tab – called SMSF Growth

Growth Portfolio

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This portfolio applies 5 stocks – as we have found over the years in Australia – a 5 share portfolio typically outperforms a 10 share portfolio.

For a growth portfolio – I believe it would be beneficial to also have the option to consider a 10 share portfolio – whereby one can diversify across further industries and sectors due to more shares in the portfolio and therefore have more opportunity to spread their capital.  The downside to such a strategy is that it could entail a lot more trades and in turn more work.

I set out to overcome the amount of trades while increasing the diversification.  The end result is stacking up so far:

Growth Portfolio - 10 Stocks

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In the video that I provide below, I have set out the exact settings to build this portfolio:


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Per the above settings – I custom built a new search – “Best Stocks <$3 – 50,000 trades”  – I took the search “Best Stocks <$3” housed in the Precision Trading Folder in UniSearch and modified it to reflect a minimum average volume being traded each day on average.  The UniSearch I created to complete this Back Test is as follows:

Best Stocks less than $3 Modified

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Some of the key considerations in the portfolio:

  • No more than 5% of a stocks volume on average purchased in any given day – to avoid moving a stock
  • No more than 3 stocks in any given sector or industry – to ensure we are diversified
  • Limiting the number of trades to 12 trades a year on average
  • Has to be realistic

To see how to put this portfolio together, please check out the video:  CLICK HERE TO SEE THE VIDEO

Let me know in the chat box below – any other considerations.  Is this realistic – is this something that makes sense?  Can we improve this further?