Portfolio : A collection of investments owned by the same individual or organization.
Will : legal declaration of how a person wish his/her possession to be disposed after their death
Fund : An amount of money saved or collected for a particular purpose
Return : Profit or loss derived from an investment
Investor : An investor is any party that makes an investment.
A set of assets which an investor holds. This may contain equities, mutual funds, insurance and other cash equivalents.
Mr. Kumar, aged 47, a marketing professional, is an ambitious investor. He wanted to save funds for the rainy day and lead a comfortable living. He had read and seen people invest in stocks , mutual funds, and many other investment vehicles.
Most of them made big money, though an even larger number had eroded their capital too. While he knew that investments would help in making returns, what he also wanted to know was the nuances of investing in them and how he could earn and invest smarter.
How to plan your investment portfolio?
There are no shortcuts to success, and for your investment to earn cents and make sense, some of the guidelines that can be followed. Read ahead.
1. Link investment to financial goals for optimal returns
* Immediate or short term goals : Achievable in under 12 months
* Medium term goals : Achievable in 1yr to 5 years
* Long term goals: Takes more than 5years to accomplish.
2. Allocate assets based on risk profile:
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3. Review the investment portfolio regularly:
The financial market changes constantly, and therefore it is important to keep abreast with the market.
4. Seek professional financial advice:
The financial market is vast and huge, and to gain expertise, considerable amount of research and experience is required.
5. Investments are not collectibles:
An investor is a person who allocates money with the expectation of financial returns from them in order to achieve the financial goal. I have seen investor’s portfolio with 46 different mutual fund schemes.
You need to be an investor (selecting few good schemes to invest) and should not be an investment collector. Just like a stamp collector the investment collector collects different investment schemes in his portfolio. This habit will dilute the returns and make the tracking and monitoring the portfolio difficult.
With changing times, the investment market has a lot to offer to the informed investors. Over the decades, the choice and variety in financial instruments have increased by leap and bounds.
Investment planning requires discipline, planning and awareness. With the right strategies in place you’d soon realize that investments can make money work for you.
If you want to create a workable financial plan, then I firmly vouch for you to take advantage of
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