This is a widely asked question and can be answered in the affirmative or negative. This blog brings in a new ideology into picture. The blog will draw parallels with the domains of investments and will answer queries that may arise as you progress reading.
FOOD FOR THOUGHT: Have you ever contemplated about what the shape of the glass is or its what are it’s dimensions? Whether your glass is half empty or half full is based upon various parameters.
Similarly there are various parameters that require attention while selecting a well-established investment plan. For the purpose of pursuing a full proof plan one must acquaint themselves with their requirements and needs. Thus setting guidelines in the form of parameters is an absolute necessity. The parameters may vary from time to time and from the first to the advanced stage of financial management. Some parameters may be listed as under:
- Your age.
- The time period you choose to indulge into investments.
- Your risk capacity and the return expectation.
- The sum you’d like to invest.
- Investing to reduce the taxation burden.
- Your creditability and current capacity.
The above are just a few parameters, many more may arise over the period of time. Thus financial and investment planning/consultation is vital to establish a balanced portfolio. The advantages and disadvantages of investing into various avenues are known through professional consultation and visiting consultancies or broking firms.
To balance your risk and enjoy growth and increase in returns it is necessary to indulge in diversity and hold on to the potential avenues by dividing and allocating the desired sum in many diverse avenues. This is known as diversity in investments and a diverse portfolio helps you increase your returns by reducing your risks. Diversity includes an ocean of investments and the readers shall be enlightened about it in the next blog.
In the meantime lets understand what a portfolio means?
It means a collection of different things that have similar characteristics. For the purpose of beginning with your investments you must approach a portfolio management firm, who will guide you through the process and make you board the flight of advanced returns. Thus portfolio is a basket encompassing various assets and commodities that inculcate savings, security and generation of your wealth.
Your glass may be half empty or half full: but you must keep track of whether the contents are triggering an expansion to the brim of the glass.
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