How to Manage Investment Portfolio?

There are a lot of different types of investment options available for an individual in the current market. However, it is not easy for one to understand which option will provide him the best returns with a guaranteed amount. Most of the options on the market have a risk option, due to which people are not comfortable investing in them. The most preferred choice for people in the past was the bank account and Fixed Deposits. They were known to be the utterly risk-free type of investment but had its drawbacks. First, the amount received in return was very less, and the duration for which the money has to be invested was long. Also, the interest rate for performance is providing a minimal profit amount.

However, with the current market situation and increased inflation, one understands that the old investment ways are not going to work as the return rate is not meeting the expectation. Therefore, young individuals have now started investing in options such as Mutual Funds and Stock Trading, etc. Since most of the investment options nowadays are linked to the market, they also contain a risk factor. The main attraction of such investments is the highest rate of return that one can get in almost half the time of old investment techniques. Mutual Funds as an investment technique is one of the most common and popular investment options. In this, a person can either pay a considerable amount yearly or pay in smaller amounts per month, quarterly or half-yearly. Once a person decides to invest in Mutual Funds, a portfolio is created for him, and his entire money is invested in many different companies. Since the investment is made in different companies, the risk factor becomes less.

This is because a loss in one company in the portfolio, will not affect the placement of other companies, hence, reducing the impact of loss. Similarly, another investment option that is the most known and used by individuals is Stock Trading. The stock allows a person to invest in a company through the share market. A person buys a share of a company and is paid regular dividends on company profits. Also, a person can buy a stock at lower prices and sell then again at higher rates, increasing his earnings. Even Stock Trading includes a lot of risk factors but was known as one of the best ways to improve your money in the shortest investment time possible. Other options include purchasing ULIPs, Bonds, Securities, etc. However, all these contain the same market risk as Stock Trading and Mutual Funds.

Most people invest their money in different types of investment plans to make sure that the risk in investment is spread and loss in one investment does not affect the other. This is a very safe approach, however, at the same time tough to manage. Few people, who are good at financial management, try to manage their investments themselves. However, a problem arises when you invest in a volatile and every chain market and do Stock Trading. With Stock Trading, you need to keep a check on the market regularly as it can change even in a few minutes. This takes a lot of time and effort. Similar is the case with investment type such as Mutual Funds. You will have to check the status and market conditions of the companies; you have invested under the portfolio.

The best option here would be to hire a professional physically or over a digital platform to make sure that he is watching over your investments and you have ample of free time to earn more and look at other different things. This is the most common and used options by almost every individual. This is because, in our busy schedule of Home to Office and vice-versa, we do not get the time to check the updates on the invested companies regularly. The professional one hire has the job to buy, sell, or hold any stocks that have changed recently. The expert will work on a fee or commission basis and will try to maximize your profits as it will also increase his commission.

Another option is to choose those investment types that give you a guaranteed return over a long time of period. Managing such investment does not cause any problems since you do not have to worry about any changes in the market and values of your investment. Long term investment like Fixed Deposits is easy to track and is a tension free and risk-free investment. Managing such investment types does not require a professional, and one can easily invest in these. However, to get increased profits and not just a mere incentive for your investment, one needs to invest in the market and research about the companies before doing so. Once you have done the required research, the risk is less than blindly investing in stock markets.

Another way to manage your investment is to plan the investment time. For example, one can expect the financing for the next ten years for his daughter’s education or 20 years for her marriage. You will have to plan when in the future a person would pay the amount and how much is needed. Once you have the clarity of your needs in the future, you will be easily able to manage all the investments.

Lastly, keep yourself updated about any new opportunities in the market that can help you earn more from the investment. For example, keep an eye on the stock of a new company that is beginning to grow. If the future looks suitable for the company, invest in them for a long time. It will give you more interest and profits than usual.

These are some of the ways on how you can yourself manage your investment. However, it is still suggested to hire a professional investment broker and be tension free. This will not only save your time but will also give expert help in managing your profits.

 

Add a Comment

Your email address will not be published. Required fields are marked *