Are you afraid of losing money? Then make a portfolio that gives returns and comfort in every situation!

If you want your money to be safe and give good returns in the long term, then it is very important to create a balanced and diversified investment portfolio. In this, investments are made keeping in mind your goals, risk capacity, and correct asset allocation, so that financial independence can be possible.

If you want your investment to give good returns for a long time and help you reach your financial goals without much stress, then it is very important to create a strong and balanced portfolio. Everyone's investment purpose and risk-taking capacity is different, so it is important to know which asset allocation is best for you. A portfolio that not only meets your future needs, but also gives you comfort. But the question is - where to start? Let's know how you can create a strong investment portfolio, so that your money works for you and that too wisely.

First of all, decide your investment goal and risk-taking capacity. Creating a good investment portfolio starts from here. First of all, ask yourself these questions: -

What is your purpose of investing? (Like retirement, children's education, buying a house, etc.)

What is your financial condition? (Like income, savings, loan, etc.)

How much risk can you take? (I.e., if the market goes down, how much fall can you bear)

You will get more profit by taking more risk

Keep in mind - if you want more profit, you will have to take a little more risk. If you are ready to take risk and can invest for a long period, then you can invest a little more in shares. This is called an aggressive portfolio. If you do not want to take much risk, then focus on options like FD, bonds or mutual funds. This will be a conservative portfolio. Your portfolio should be according to your needs, goals and peace of mind.

Asset allocation is most important at the beginning of investment

When you start investing your money, the most important thing is asset allocation i.e. where your money is invested. A good portfolio is not just stocks, but it includes different types of things – such as bonds, mutual funds, ETFs (exchange traded funds), some cash and sometimes even gold or real estate.

Every investment has its own risk and return. Some investments can grow rapidly but there is a high risk of decline in them (like stock market), while some investments are safe but their returns are a little low (like bonds or fixed deposits). Therefore, it is important that you do not invest your money in just one place, but distribute it in different places. This is called diversifying. When you do this, even if there is a loss in one investment, the other investments can compensate for that loss. This reduces your overall risk and makes your investment more balanced and secure.

How to build a strong investment portfolio?

Investing in stocks: Before investing in the stock market, decide how much risk you can take. Then analyze the companies with the help of tools like stock screener, understand their financial condition, growth and future prospects. Invest in any stock only after doing complete research.

Fixed deposit: If you want to take less risk then fixed deposit is a good option. In this your amount remains safe and you get fixed returns, so it is suitable for conservative investors.

Mutual funds: In mutual funds, you can invest in many asset classes like shares and bonds simultaneously. These funds are managed by professionals, who choose stocks and bonds on the basis of research. This is a convenient and balanced option for investors.

ETFs: ETFs or Exchange Traded Funds are like mutual funds but they trade like stocks in the stock market. They provide an opportunity for diversified investment at low cost and provide more transparency and flexibility than mutual funds.

National Pension Scheme (NPS): If you want to invest for retirement, then NPS is a good option. It invests in all three places - equity, corporate bonds and government securities. Along with this, tax benefits are also available.

Stay invested for the long term: Fluctuations in the stock market are common, but if you stay invested for a long period, you are likely to get better returns. Therefore, do not panic and take decisions on seeing small changes. Focus on your long-term financial goals and maintain patience.

Monitor the portfolio: Market conditions keep changing from time to time, so it is important that you review your investment portfolio regularly. Sometimes the portfolio needs to be rebalanced - that is, to check which asset classes you have over-invested in and which ones you have under-invested in.

Identify the overweight and underweight parts and change them as per the need so that your portfolio remains balanced and you keep getting the returns as per your requirement. Lastly, if you are investing in mutual funds, keep in mind that your portfolio should be made according to your goals, risk and investment preferences. Such a portfolio will not only give stable returns but will also lead you towards financial independence.

Disclaimer: This information is only to increase your understanding. Before any investment, definitely talk to an expert. There can be profit as well as loss in investment, so take any decision carefully.