How to ensure that the light shines on your wealth this Diwali: 5 tips to polish your portfolio

To build your portfolio is one of the first steps towards managing your investments and savings at one place. An investment portfolio is a one-stop solution for all your financial as well as organizational problems. If you know how to build it, and if you have decided to polish it at an opportune moment, this is the time for you. The festive season is here, and that means investment opportunities and that means all the avenues for investment and business marketing are open for a revived upliftment in every way possible. Therefore, you should manage your wealth according to the investment opportunities available and enhance your portfolio using the following methods:

Revisit your old investments

You are often inclined to invest in a scheme or plan which has been recommended to you by members of your family, or your friends. You might have invested them at that moment, but now it is time to revisit them. You should manage your wealth and build your portfolio based on your present requirements. Often, the requirements of an individual on the economic front changes from year to year, and you should look at investment opportunities accordingly. Therefore, this Diwali, revisit the old investments you had made and make the necessary changes there.

Edit your portfolio

There might be a few funds you had invested in, which have not been able to perform up to your expectations in the last couple of years. Under such circumstances, there is no need for you to continue investing in such a fund since it is not giving you any kind of profit. Thus, the portfolio you build has to be precise and effective at the same time. You need to only invest in plans which are beneficial for you, and cutting off the plans which are dead is a good step to go forward.

Restructuring the portfolio according to needs

If you are looking to bring back an old portfolio to life, then it would require some serious restructuring. There are two different kinds of goals in your financial requirements. These are short term and long term goals. To build your portfolio according to the investment opportunities available in the market, you have to ensure that it caters to both of these requirements at any given moment. There are financial requirements like the fees for your children’s school, medical expenses and home loans. The portfolio you use to manage your wealth should strike an ideal balance between every one of these avenues.

Additional Read: Tips on Investing like a Pro in different asset classes based on their risk

Periodic review of your portfolio

Even when your portfolio is built, the work is far from over. The investment portfolio which will help you keep a track of all your investment opportunities and avenues also needs to be reviewed and revised periodically. The maximum time period for which a portfolio can sit idle is one fiscal year. Therefore, periodic revisions are of utmost importance. This is necessary as the financial condition keeps on changing in a country like India. The annual review of your portfolio will help you polish it in ways you did not foresee.

Learn from the past

If this is not your first time at making an investment portfolio, then you should know by now that learning from the past is the best you can do to speed things up. Everyone has a spending and saving pattern, and all you need to do is figure out yours. Find out the weak links in your patterns. Enlist the decisions which had gone wrong in the past, and note down your learnings as well as an action plan for improving upon them. This will not only help you in maintaining a healthy investment portfolio but in your overall financial planning as well. 

Additional Read: Advantages of Having Debt Mutual Funds in Your Portfolio

Conclusion

Once you follow these steps, the portfolio you would have built will be a unique one that can benefit you for years to come. It would lift a huge financial burden off of your back and give you relief.

Want to know how you can do this even better? Check out the Moneyfy app by Tata Capital, where you can not only create customized financial plans and portfolios, but also track your portfolio in real time. This means constant and easy analysis and insights, and a streamlined portfolio.