![]() ![]() ![]() The fund manager makes the investment as per the investment objective of that particular mutual fund. The fund manager then invests this pooled money across various asset classes such as equity, debt, gold, and other securities to generate returns. Mutual Funds: Mutual funds are an investment vehicle in which multiple investors pool their money to achieve a common objective. ![]() They often offer lower returns on your investments than equities.ģ. These are considered less risky investments than stocks. You also receive your investment amount or face value at maturity. These debt instruments offer you a regular rate of return through coupon payments. Bonds: These instruments are used by the government or companies to raise money by borrowing from investors. Sebi defines large-cap stocks as the top 100 companies as per market capitalisation, Mid-cap stocks include companies with a rank between 101-250, and Small-cap stocks include companies starting from rank 251 onwards based on market cap.Ģ. Stocks can be further classified into large cap, mid cap, and small caps based on their market capitalisation. Due to the higher underlying risk in equities, they have a great potential to deliver high returns. These are considered highly risky investments due to their volatility. Stocks: A type of security that gives you a share of ownership in a company. The portfolio’s components include multiple assets, some of which are:ġ. A well-structured portfolio allows investors to diversify their investments, match risk with the risk appetite of the investor, and achieve financial goals in time. Having these multiple assets in the portfolio helps you to mitigate the risk involved in the specific investments and helps in generating maximum return over the period. The meaning of a portfolio may vary depending on the investment goals, risk tolerance, and financial situation of a person.Ī portfolio includes different financial assets, such as stocks, bonds, mutual funds, real estate, bank fixed deposits, etc., that investors hold for a particular period. We will also deep dive into the things you should consider for building an effective portfolio to achieve your financial goals in time. Let’s understand what a portfolio is and its types. The primary goal of building an investment portfolio is to generate wealth over the investment period and achieve financial objectives such as the purchase/construction of a house, buying a car, children’s higher education or their marriage, retirement planning, etc. A portfolio means the bucket of multiple financial assets an investor owns. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |