How You Can Build and Sustain a Healthy Investment Portfolio

It takes a large number of bricks to build a house; building an investment portfolio is no different. Just as you need a clear blueprint and a specific strategy to build your dream home, you require a clear and specific approach to create an optimal investment portfolio. 

1. Know Where You Are Headed

The easiest way to reach your destination and attain your goal/s is to know where you are headed. To craft an effective investment strategy, you must gain clarity on your investment goals, including answers to certain key questions, including:

• The amount you wish to accumulate via your investments

• The estimated timeline of your investments

• The quantum of risk you are willing to undertake 

2. Focus On Asset Allocation

Once you are clear about your investment goals and timelines, you can turn your attention toward asset allocation. This exercise is a critical component of building your investment portfolio. You should select the assets to include in your portfolio after accounting for several factors, including:

• Your risk appetite (low or high) 

• Your investment timeline (short-term, long-term, or both) 

• Your mode of involvement (passive or active) 

3. Diversify Your Portfolio

The key to building a healthy investment portfolio is diversifying it. Not only does diversification increase the chances of aggregate return on a portfolio, but it also ensures that the portfolio is not highly affected by the market portfolio. You can diversify your portfolio across:

• Asset classes in the same industry 

• Assets from different industries 

• Investment in domestic as well as international share markets

4. Take the Correct Course

It is not sufficient to merely build a healthy investment portfolio; since market-linked investments are subject to some degree of volatility, it is important to monitor the performance of the assets in your portfolio on a periodical basis and make the necessary additions and deletions. You must also take stock of your changing investment goals and risk appetite and modify your investment portfolio accordingly. 

5. Seek Expert Advice When Required

Although the advent of tools such as SIP investment calculators has made it easy to choose and manage your investments on your own, there are times when you may require professional advice. In such a scenario, you can reach out to registered share market brokers and portfolio management firms. 

Opt For Investment Advisories From Ajmera x-change

Should you decide to seek expert advice to build or balance your investment portfolio, Ajmera x-change can provide you with the requisite assistance. As one of the leading financial services providers in India, we offer expert consultancy services across asset classes. Whether you require investment advisories or portfolio management services, our highly experienced team can help you fulfill your investment goals.