What is the use of money if it cannot stand with you through the test of time?
We all need money to fulfil various needs at different stages of life, and only a strong financial portfolio can help you fulfil them. To have enough money, people start investing in high-risk funds believing they are building a strong financial portfolio; however, they end up getting low returns. To prevent such mistakes from happening, it’s important to know HOW to invest before knowing WHERE to invest.
Features of a Strong Financial Portfolio
Three important features that a good financial portfolio has, irrespective of age, gender, and socioeconomic status:
The aim of diversification is to reduce risk. This does not mean investing 100% in debt (guaranteed returns). It should be a mixture of both equity (risk-based, non-guaranteed returns) and debt investments. Your age plays a very important role in deciding the percentage of debt and equity investments in your portfolio.
Limited but smart investments
Do you regularly add new investments to your portfolio? If you do, you’re probably not on the right track, because you are likely to end up with an unmanageable hotchpotch of investments rather than a simple but smartly chosen, manageable, and reliable portfolio that balances your risks and returns.
A balanced portfolio is a mix of diversified but limited and smart investments. Once you have a well-balanced portfolio, your investments only require monitoring, re-balancing, or replacing with a new version of the same investment, keeping your age and income in mind.
Based on what you want, it’s really easy if you plan your investments early and stay committed.
Achieving a Strong Financial Portfolio in 5 Steps
Tax-free returns as high as mutual funds | Solution: ULIPs
ULIPs and mutual funds operate in the same markets and give similar choices of instruments and risk exposure. Therefore, they are exposed to the exact same risks and make similar gains. The difference is that returns on ULIPs are tax-free whereas you will have to pay 10% LTCG tax on MFs. So, invest in ULIPs early in life, because the more it compounds, the higher the pay-out!
Monthly pension income | Solution: Retirement Plan
Retirement plans come with monthly income options, helping you plan and save today so you can have a non-dependent, secure tomorrow with no lack of funds. Moreover, the pay-outs of retirement plans are also tax-free.
Health financially secure | Solution: Health Plan
Having a health plan means you don't have to worry about hospitalization expenses and you will always get the best treatment. In fact, family floater plans give you the opportunity to secure not only your but also your family’s health.
Guaranteed returns to secure child’s future | Solution: Child Plan
Mutual funds’ returns are subject to market risks, which are unpredictable. However, child plan returns are guaranteed. Once insured, the pay-out is not dependent on external factors like markets and investor sentiments.
Financial security for my loved ones in my absence | Solution: Term Plan
Term insurance is the simplest and the most cost-effective form of life insurance that provides financial security to your family in the event of your untimely demise.
The New Year 2021 is perhaps the best time to build a strong portfolio or have your portfolio reviewed by experts. Get financially stable and strong today!
To speak with financial experts, feel free to write to us at firstname.lastname@example.org or call 86559-86559. We look forward to assisting you.