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How To Strengthen Your Investment Portfolio?

Investing is good for you. One, it ensures long-term financial security for the present and future. Second, the money generated from your investments is an excellent way to earn additional income.

We all want investments that give fast returns without the risk of losing the principal amount. And it is natural to search for top investment options that can multiply your money in a few months or years with little or no risk. 
The introduction of options like cryptocurrencies, peer-to-peer lending and Systematic Deposit Plan have made quite a mark. With Systematic Deposit Plan by Bajaj Finance Limited, regular savers are able to grow their savings easily without worrying about having to accumulate a larger corpus. 

Amid these exciting updates, here’s a look at the top considerations to keep in mind in 2020 to strengthen your portfolio.

1. Diversify your portfolio: “Do not put all your eggs in one basket” is the golden rule for managing your investments. You need to choose investment options that can help you diversify your portfolio. By mixing and matching diverse options, you can safeguard your investments from volatile market risks and fluctuating interest rates. Analyzing your situation, both present and future is important.

You can start bringing a diversification in your investment portfolio with mutual funds, short term fd, pension plan, bonds, stocks, etc. Make it a mixed bag of equity and debt funds if you are considering to allocate your money for mutual funds.

2. Assure healthy and stable returns: You must ensure that you get good returns from your investments. This can be done by:-  

  • Not getting lured into the promise of healthy returns most equity investments promise.
  • Analyzing all risk factors and doing your homework to see the short-term losses and gains with returns you’ll get in 5-10 years. 
  • Choosing your schemes and plans by first checking how they performed in the past. However, do understand that past performances don’t guarantee that the scheme will work in the future as well.

3. Evade taxes and risks: In addition to diversification, it is important to keep a tab on the taxation costs of your investment portfolio. Furthermore, to ensure optimum returns, keep your portfolio away from unnecessary risks such as stock market fluctuations, global economic conditions and more.

4. Align with your financial goals: Your investment portfolio should meet your financial needs. This is why a sound investment portfolio can always be personalized according to individual needs and is perfectly aligned to all your financial goals. For example, if your child’s education is your goal, invest in a fixed income asset such as a fixed deposit. Keep checking interest rates for different financial institutions and calculate the returns using accurate FD calculator such as the one from Bajaj Finance.

Easy management is the key
A strong portfolio should never be complicated or confusing to manage. Try using only a handful of investment instruments to keep things simple and manageable. Ease of doing this would mean you will stay in control of your investments without any need for expensive investment advisors.

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