How to Build Your Investment Portfolio

2. How to Build Your Investment Portfolio

3. Investment Portfolio • An ideal investment Portfolio as they allow you to make affordable purchase in • Fixed Deposits • Government Securities • Mutual Fund • Gold • Real Estate

4. Your Portfolio Selecting the right product mix to include in your portfolio is the key what’s right for one investor may be wrong for another, depending on what the investor already holds, his risk tolerance, time horizon and other factors.

5. Constructing an ideal portfolio is not easy job With a variety of investment products available, choosing the right one is a critical but daunting task. Here are some things to consider while building a investment portfolio.

6. Think before creating an ideal Portfolio Before creating an ideal investment portfolio, consider why you are investing in the first place. Before specific with your goals can help you decide which investment products are right for you. Start by answering these questions:

7. Investment Portfolio What are you saving for! • You need a regular income • You need to buy a home • You need to buy a car • You need to finance your child’s education • You need to go for a foreign trip • you need to cover yourself for any contingency expenses • You need to plan your retirement • You need to do tax planning

8. Investment Portfolio What is the time frame you are looking at! • You need a regular cash flow • You need a lump sum amount to meet a specific need • You do not require cash flow currently • You wish to build assets for the future

9. Investment Portfolio How much risk can you take! • You wish to minimize risk • You are willing to accept fluctuation in investment value • or even short-term losses in order to achieve long-term • potential gains • You wish to build assets for the future in spite of short • term losses

10. Investment Portfolio Your asset allocation pattern should be in line with your risk profile and return objective and will determine how your investments need to be allocated among different asset classes

11. Investment Portfolio The possibility of higher returns comes at the expenses of greater risk of losses in near term! Thus a young individual who need not depend on his investments income can afford to take great risk in the quest of higher returns. On the other hand, a person nearing retirement will need to focus on protecting his assets and earning income in a tax efficient manner.

12. Investment Portfolio Strategies Diversifying your investment is important And by appropriately allocating your investment funds among different assets classes ( FD, G-Sec, MF, Gold , Real Estate), you can improve your portfolio’s performance while reducing your portfolio’s risk. Customize your own investment mix by selecting individual funds and deciding how much to invest in each. The investment product must be able to compensate you for the risk taken. Invest in a mix of management styles to maximize returns for a given level of risk.

13. Investment Portfolio • Broadly you can divide your investment funds in to three categories: • Near term investment funds say 1 day to 1 year • Short term investment funds say 1 year to 5 years • Long term investment funds say above 5 years • Take a look at the investment product’s manager’s record • and monitor your investments with your financial planner • within one year.

14. Connect Corporate Office : ICI Advisory Consultancy India LLP 131, First Floor, Rampurawala Building, 70 M.G.Road, Indore (M.P.) 452001 Connect : 919826045003 919977238381 Email: info@iciadvisors.com www.iciadvisors.com