Diversified Portfolio – Why?

Why have Diversified Portfolio? Portfolio Management and Diversification.

Why have Diversified Portfolio? Portfolio Management and Diversification. How Diversified Portfolio Minimize Risks and Protect your Investment? Diversification Theory and Formula by Age.

What is Investment?

“Investment is putting your saved money at the place to make more money.”

Examples of some good investment options are – shares and equity, bonds, mutual fund, real estate, bank fixed deposits etc.

Understand:

• Rakesh Jhunjhunwala Stocks Portfolio
• Portfolio Vs Age – Portfolio and Age Relationship
• Best Investment Options in India for Young Age Adults

Portfolio Diversification Options

Diversified Portfolio Minimize Risks and Protect your Investment.

Risk and returns are directly proportional to each other. The higher the risk, the higher the returns. The more risk you take, the more money you will make.

Examples of Some Best Diversified Investment Portfolio:

S. No	Investment Type		Return
1.	Equity Investment	:	Dividend and Capital Appreciation
2.	Mutual Fund	:	Dividend and Capital Appreciation
3.	Bond	:	Yield
4.	Bank FD	:	Fixed Interest
5.	Real Estate	:	Rental Income and Appreciation

• Learn: Best Investment Options for High Return

Diversified Portfolio Goals

Setting investment goal or objectives is a must prior to investing money. Investment goals should always be for long-term. Long-term investment goals can generate good return over a period of time. Short-term investment can be fetal and may result in loss.

In share trading business, prices in the Stock Market in India can fluctuate rapidly over a short period. Hence a long term investment prospective is always good. Beginners who want to invest in stock market must always go for long-term of at least 2 years.

Understand:

• How to Set Investment Goals?
• Investment Portfolio Management
• How to Invest Like a Professional Expert?

Diversified Portfolio Management

It is very important to have a diversified portfolio to minimize risks and protect your investment. Diversification of investment in different investment tools shields you from market fluctuation and potential risks.

Investment in Stock Market

When investing in stock market, it is important to Pick Best Stocks and buy shares of different stocks from different sectors such as – Textile, Auto, Green Energy etc. Even the best stocks possess some risk and there is always a chance of loss.

Apart from investing in high-risk high-gain shares, it is important to invest in some defensive stocks to protect your hard earned money from potential losses.

Risk-Free Investment

Investors must also invest some portion of their saving in Real Estate, Government Bonds and Bank Fixed Deposits to safeguard their investments as these tools possess very less to no risk. These investment tools also offer fixed income.

FAQs: Diversified Portfolio

Conclusion

Portfolio management is all about managing investment and diversification so that the invested money grows with minimum risk. The best strategy to portfolio management would be to select the best performing sectors and then pick the best performing stocks within these sectors and then invest your money. => Best Performing Textile Stocks to Buy in India

Apart from stock market, people should also invest some portion of their saving in money market fund and in fixed income tools.

Also Read:

• Share Trading Mistakes to Avoid
• Volatile Stocks – Should I Buy?
• What is PE Ratio (Price-To-Earnings Ratio)
• How to Save Money?
• What is Intraday Share Trading?
• Intraday Trading Tips and Strategies for Beginners
• Types of Orders in Stock Market in India
• Stock Market Terminology for Beginners
• How Stock Market Works?
• What is Demat Account?
• How to Open Demat Account in India?
• Where to Open Demat Account Online in India?