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Our 5 star stock portfolio performance and The GOFC Challenge.

A strategic approach towards building a stock portfolio

The world of investing can be complicated for an individual investor. There are several asset classes such as mutual funds, exchange-traded funds, a variety of bonds and fixed-income products, commodities, foreign exchange – and then, of course, stocks.

As increasing number of investors are turning to low-cost ETFs, the question always arises - is it worth taking the time to build a stock portfolio? Industry experts say that if someone is willing to put in some time and research, there are advantages to individual stock ownership.

So, what is the strategy that an investor can use to get started picking the companies that go in their stock portfolio? It basically comes down to four important points. 

Invest in some study time: Building a solid stock portfolio is going to require some time, research, and homework. Be prepared to be patient, understand your investing personality, and choose companies that you understand and easily grasp the business model.

Develop a plan and take a long-term view:  Industry experts say that an investor should have at least three to five years of time frame as part of a long-term view. The longer the better to lessen the inevitable volatility.

Use parameters when choosing stocks: Set up a list of a parameter that is important to evaluate the companies and then shortlist the companies that meet those criteria. 

Diversify with 10 to 40 individual stocks: There are 10 stock sectors classified by S&P Dow Jones indices. These include energy, materials, industrials, consumer discretionary, consumer staples, health care, financials, information technology, telecommunication services, and utilities.  As a rule of thumb, you would like to own two to four of the top performing companies in each major sector to get the optimal mix in your portfolio.

Now all that is great. But does it really work? 

At Investify, we look at many different strategies by analysing the data, doing the number crunching, and testing our hypothesis by creating a model portfolio of stocks that meets certain criteria.

One such experiment we did recently was with a list of 35 stocks that satisfied our 5 Star conditions as on 21st May. 

We have been tracking the performance of this portfolio since May (just after our launch) and we were delighted with the result. On a month-on-month basis Our 5 Star Portfolio has consistently beaten both the ASX 200 and NZX50 Index.

During the 5-month period (between 21st May and 22nd October 2021) the equally weighted  portfolio consisting of 13 Large-cap, 17 Midcap, and 5 Small-cap stocks of ASX & NZX listed companies had a price return performance of 9.02% (before dividend payout, fees, and taxes) compared to 5.48% for ASX 200 and 3.75% for NZX50. 


Source: Investify 5 star stocks list and S&P Index returns


We are super stoked by this result and we encourage our users to try and test different strategies they want to follow by using the intelligent filters, advance filters and My Portfolio features. The list is dynamic as market changes and you can view the current list of stocks from the stock search page by clicking on the intelligent filters.
It’s a fun way to learn the tricks of investing before actually investing your hard-earned money, so we would definitely recommend to give it a go. 


In summary, picking good stocks requires good amount of research, time, and the ability to evaluate many parameters to narrow down on stocks that meets your investing personality. Having access to a good tool will save you a ton of time and energy whilst also building confidence around the stocks you finally end up investing in. Investify significantly reduces time on research, eliminates complexity and give you a powerful tool with which you can pick your ideal stocks in matter of seconds based on Insights.

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Inside Investify..

In October, the Investify team took part in the Global Open Finance Challenge 2021 and got busy with developing solution, pitching ideas and collaborating with teams across the world. It was a busy week of nonstop activities but it was also a very rewarding experience. 
Global Open Finance Challenge is an initiative from four major banks (CIBC, Itaú Unibanco, National Australia Bank and NatWest Group) and AWS aimed at building a stronger, more progressive global banking and financial industry by building on the opportunities presented by Open Banking.
Investify was humbled to have been selected as the Top 100 from over 1700 Fintechs around the world! It re-inforced our belief that when it comes to giving legs to ideas a small start up from the far corner of the world can also make an impact in the Global Stage.
To know more about GOFC and to watch our experience video click on the link below.

Global Open Finance Challenge

Experience Video

Any feedback on Investify is always welcome and very much appreciated, so please feel free to tell us what you think about us through the form below. 

Tell us about your experience

Team Investify

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