Foreword:
Prior to have a closer look at how a portfolio might be structured for different types of investors we should for ease of reference first look at three strategies, or options, which are available.

Strategies Available
The strategy is essentially the goals or objectives which the client who is investing his funds will have. There are three basic options:

Capital appreciation
An increase in the capital value of the portfolio will be the priority and this would be achieved at the expense of income return. There would also be a high element of risk involved with this strategy as often with risk comes the chance of reward.

Income return
Income would be the priority and as a result, growth in the value of the capital would be sacrificed. There would generally be less exposure to risk with such a strategy and instead a greater element of security would be built into the portfolio.

Balance between capital growth and income return
This is often referred to as a 'middle of the road. Policy as both income and capital are required, with equal importance placed on both factors. There will be some risk but there will also be a similar weighting for security.

The Structure of an Investment Portfolio
The structure of a portfolio will usually contain a combination of the following elements.

Liquidity
This will comprise short-term funds which are available immediately or at short notice, such as cash or ban deposit accounts.

Investment which provide security and / or income
An element of the portfolio would usually be invested in low risk vehicles which, by their vary nature, should also provide at least a minimum income return.

Capital growth
Finally, a portion of the fund would usually be invested in holdings designed to increase the capital value of the fund. This segment is at greater risk but is often offset by the holdings acquired for the security covered in the Sub-section above.

The split between the investments held for liquidity, security and capital appreciation will vary depending upon the objectives of the client. The reader / client can examine some possible strategies for different types of personal investors in the following Section.

Possible Strategies for Different Types of Clients
This is a difficult area on which a comment as every client is different and their requirements and situations will vary. However, the following generalising, and it must be stressed that this is all they are, might shed some light on what certain client types might be looking for.

Single person, no dependants and in employment
A long-term strategy for capital growth would usually be appropriate. Often such a portfolio is designed to provide a 'pension' fund for the client's old age, current income requirements are probably being met by their employment income.

Married person, no children
Probably a similar strategy to the above will be required although if the couple are planning a child they might prefer a short to medium-term view to secure sufficient capital gains to meet future commitments.

Married with young children
A long-term view might be appropriate for part of the fund with the emphasis on capital growth. The aim might be to provide a fund to cover college or university fees in the future. However, in the short-term, income might be a problem ( as young children are expensive, as many of you already appreciate) and if this is the case the strategy might be better suited to a short to medium-term view to maximise income. The level of the employment income could be a factor here.

Married with older children
This might also be an expensive time, especially if the children are in tertiary education. If so, income might be a priority. However, if the children are no longer dependants, a long-term view to provide capital growth for old age might be more appropriate.

On retirement
Usually, employment income will have ceased and the client's house paid for, so income will be the major requirement. Security is also important as this will be the client's retirement fund and must last him to the end of his days.

The information usually required by service providers to formulate an investment portfolio
Although the information required will vary between service providers, the following will usually be the minimum information requested to achieve the construction of an investment portfolio.

Personal Details of the Client and his Dependants
The age of the client, his address, his marital status, and if he is married, usually details of his souse, are all important detail. If there are children, the number and their ages will be needed.

Financial Position
The client should be asked to confirm what assets he holds, both in his sole name and jointly with others. The list should include all assets, including realty, bank deposits, investments or interest in trusts. Approximate values would also be useful.

His sources of income should also be ascertained, to include any earnings from employment, together with confirmation of his financial commitments, such as mortgage or loan repayments and school fees.

It would also be useful to know whether he has nay pension arrangements or life assurance cover as without such provision it would be wise to include some form of retirement planning in the strategy which is to be followed.

Taxation Situation
The client's tax position should be ascertained, to include confirmation of his highest rate of income tax and capital gain tax, his residence situation and his domicile position.

The reader / client should be aware that some onshore investments are tax-free for certain individuals (such as UK government exempt gilts)

Investment Parameters
The client's attitude to risk should also be ascertained. Some investors will be nervous about the risk of losses whilst others are keen to invest in speculative securities.

Personal Preferences
The client should be asked whether he as any preferences relating to choice of investments. For example, some clients do not want to invest in companies which are connected with tobacco or drugs. The client may also want to retain or invest in a particular company or its shares for sentimental reasons.

'Home' Currency
The currency of the client's country of residence may also be a determining factor. For example, if the client lives in the USA and regularly requires dollar payments to top up his income, there would be little point in having assets invested predominantly in sterling as sale proceeds would have to be converted to dollars, and exercise which would create exposure to potential currency losses.