How to Build Your Investment Portfolio
Post on 10-Jan-2016
DESCRIPTIONHow to Build Your Investment Portfolio. Investment Portfolio. An ideal investment Portfolio as they allow you to make affordable purchase in Fixed Deposits Government Securities Mutual Fund Gold Real Estate. Your Portfolio. - PowerPoint PPT Presentation
How to Build Your Investment PortfolioAn ideal investment Portfolio as they allow you to make affordable purchase in Fixed Deposits Government Securities Mutual Fund Gold Real EstateInvestment PortfolioSelecting the right product mix to include in your portfolio is the key whats right for one investor may be wrong for another, depending on what the investor already holds, his risk tolerance, time horizon and other factors. Your PortfolioWith a variety of investment products available, choosing the right one is a critical but daunting task. Here are some things to consider while building a investment portfolio.Constructing an ideal portfolio is not easy job
Before creating an ideal investment portfolio, consider why you are investing in the first place.Think before creating an ideal PortfolioBefore specific with your goals can help you decide which investment products are right for you.Start by answering these questions:
What are you saving for! Investment Portfolio You need a regular income You need to buy a home You need to buy a car You need to finance your childs education You need to go for a foreign trip you need to cover yourself for any contingency expenses You need to plan your retirement You need to do tax planning
What is the time frame you are looking at! Investment Portfolio You need a regular cash flow You need a lump sum amount to meet a specific need You do not require cash flow currently You wish to build assets for the future
How much risk can you take! Investment Portfolio You wish to minimize risk You are willing to accept fluctuation in investment value or even short-term losses in order to achieve long-term potential gains You wish to build assets for the future in spite of short term losses
Investment PortfolioYour asset allocation pattern should be in line with your risk profile and return objective and will determine how your investments need to be allocated among different asset classes
The possibility of higher returns comes at the expenses of greater risk of losses in near term! Investment PortfolioThus a young individual who need not depend on his investments income can afford to take great risk in the quest of higher returns.
On the other hand, a person nearing retirement will need to focus on protecting his assets and earning income in a tax efficient manner.
Investment Portfolio StrategiesDiversifying your investment is important
And by appropriately allocating your investment funds among different assets classes ( FD, G-Sec, MF, Gold , Real Estate), you can improve your portfolios performance while reducing your portfolios risk.
Customize your own investment mix by selecting individual funds and deciding how much to invest in each. The investment product must be able to compensate you for the risk taken.
Invest in a mix of management styles to maximize returns for a given level of risk.
Investment PortfolioBroadly you can divide your investment funds in to three categories:Near term investment funds say 1 day to 1 yearShort term investment funds say 1 year to 5 yearsLong term investment funds say above 5 years
Take a look at the investment products managers record and monitor your investments with your financial plannerwithin one year.
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