The consumer staples sector contains some of the biggest names in the U.S. consumer field, such as Wal-Mart, Proctor & Gamble, Coca-Cola and General Mills. These companies are large and diversified, allowing them to ride the ups and downs of the stock market with relative security.
Consider getting help with consumer staples sector investments as your company builds its investment portfolio. Your consumer staples sector consultant might recommend investing in the individual companies in the sector or a sector mutual fund. A key advantage of an investment in the consumer staples sector is a defensive or safety position in a volatile market. As your company gathers consumer staples sector information, do the following:
1. Educate your investment team about the companies that make up the consumer staples sector and their historical performances.
2. Develop a company investment strategy that includes the consumer staples sector.
3. Purchase consumer staples sector stocks or shares of a mutual fund.
Get consumer staples sector training onlineThe first step in adding consumer staples stocks to your company portfolio is learning about the sector, the companies that make it up, and their performance trends. You can find a wealth of information about each company at its website or at those of leading investment research firms. For stock market performance, visit several of the investor-focused sites.
Choose some consumer staples stocks to followOnce your investment team has developed an investment plan, track the stocks under consideration. Check recent ups and downs as well as their historical performances. Look for analysis of trends during market conditions similar to those at the time you plan to invest.
Buy consumer staples sector stocks or shares of a sector mutual fundInvesting in individual stocks is a solid strategy for diversifying your company's portfolio. Purchase shares in one or more companies in the consumer staples sector to add to the holdings. Another option is a consumer staples ETF, which will include stock from several of the sector's companies. Several different funds are available. Each will be professionally managed.
- Portfolios can be an opportunity to balance your company's investment. Make sure high-risk ventures are matched with safe choices. Use industry ratings such as Morningstar to help determine the safe from the riskier choices.