Growth portfolios attempt to maximize return by owning companies which have a high potential for rapid growth and shareprice appreciation. Growth portfolios are a little more concentrated or non-diversified. Growth portfolios tend to own;

1. Micro-cap and small-cap stocks
2. Small company ETF's
3. Specialized sector ETF's that might include healthcare, technology, etc.
4. Cash positions when appropriate

Growth stocks tend to be more volatile because quarterly sales and earnings can be unpredictable, industry or economic conditions change, and competition can hurt profit margins. All of these factors combine to increase volatility. Many of the attributes or criteria looked for  when determining what stocks to buy include;

1. Rapid or accelerating sales and earnings (quarterly and year-over year)
2. High return on equity (ROE)  (how efficient a company uses its capital)
3. Management ownership of shares (high % shows mgm'ts. faith in company)
4. Good profit margins, low debt to equity, good cash flow
5. Unique products or services (a key to long-term earnings growth)
6. Strong sector or industry group (large % of a stocks move due to this)
7. Institutional buying from leading mutual funds (85% of volume institutional)
8. Bullish chart pattern (shows institutions want to own the stock, not sell)
9. Company re-purchasing its shares

Of course not all of these criteria will always be met, but the more of these the company has, the greater the chance for success.

Blended portfolios are more diversified and own a mixture of conservative and aggressive investments including;

1. Micro-cap, small-cap, mid-cap, and large-cap stocks
2. REITS (Real Estate Investment Trusts)
3. Fixed-Income when Fed policy favors these
4. Developed market and emerging market stocks or ETF's 

Mid-cap companies are still growing and are beginning to establish themselves. Mid-cap stocks have the potential to keep growing because they are making inroads into their markets and have the opportunity to become a large-cap company. Larger companies are usually slower growing and more mature or established. Some of the criteria include;

1. Longer term record of sales and earnings growth (consistent year-over-year)
2. Earnings momentum is still positive for the industry or sector
3. Good profit margins, return on equity, low debt, good cash flow
4. Shares owned by better performing mutual funds
5. Stock is in a longer term uptrend or basing pattern

Conservative portfolios will emphasize Blue Chip, Large company, and dividend paying stocks and Exchange Traded Funds. In addition, there is a focus on dividends, and a long term track record of stable earnings growth and rising dividends. The goal is to keep volatility low, while at the same time, grow the portfolio steadily over time. Some of the criteria include;

1. Very stable history of consistent earnings growth
2. History of dividend increases over time
3. Good return on equity, low debt, repurchasing shares
4. Broad diversification of products or operations (insulates the company because they have a wider range of products and services as opposed to a small company with just one or two)
5. A good value based on the historical price and valuation levels (lower end of the historical price-to-earnings ratio, or dividend yield) for example

High Grade fixed Income investments will also be included in the portfolio including corporate and government bonds,preferred stocks, REITS, other asset classes such natural resources when they become attractive and their potential outweighs the risks.