Every individual should have an Ideal Investment Portfolio to suit his Risk Profile and inturn aid him in attaining his targeted financial goals at various stages of his life. The following are the various investment areas or sectors an individual can aim at. It is arranged in the order -
Low Risk - Low Return Products to High Risk - High Return Products :
-
Bank Deposits
-
Postal Savings : PPF, NSC...
-
Government Bonds
-
Industrial / Company Deposits
-
Mutual Funds
-
Real Estate
-
Equity (Share Market)
Though having a House or Land has been a major financial decision in the life of any individual, a typical Indian investors has not crossed beyond Bank and Postal Savings Deposits stage of investing.
Security and Safety has always been our prime objective rather than aiming for Higher returns through diversification. Present economic boom and performance of sharemarket indicates the necessity for every individual this participate in this financial game of life.
A typical equity exposure for an individual is (100 - His Age in Years) i.e. for a 25 year old - max 75% of his Portfolio could be tilted toward Equity.
So what is your AGE now....?
