Nowadays the word ‘portfolio’ is quite popular. Before this generally the word ‘savings’ was used instead of portfolio. A person keeps saving regularly from his income for future needs and security and keeps investing his savings in various investment instruments, so that along with interest on his savings, he also gets the benefit of capital increase. In general terms, a person’s ‘savings bundle’ is the portfolio. In it, the savings bank, P.P.F., Post Office Saving, Kisan Vikas Patra, National Saving Certificate, R.B.I. Bonds and corporate bonds etc. may be included; Whereas in the stock market the word ‘portfolio’ is used from the bundle of investments made in shares of different companies. Now the term ‘Portfolio Management Services’ means ‘P.M.S. Is becoming popular by the name of. Along with earning money, making systematic investments is an art. If a person fails in this art, his hard-earned money is destroyed. To get rid of this risk, people have now started taking the help of portfolio management service. Most people do not have time left to manage their own portfolio after doing their business or job and then time alone is not a problem. For portfolio management, it is also important to understand it. Today people have become rich due to various types of investments in the capital market. With the increase in their numbers, diversity and complexity have also increased. In such a situation, special skills are required to manage it.
First of all there is a need to understand what is portfolio and its management? Why and how should a person portfolio shares and how should he pay attention to it? To understand in simple language, let us assume for example that on applying in a public issue, a Rajesh Sharma got 300-300 shares of two companies and deposited in his demat account. After that he bought 500 shares each of two other companies from the market. Seeing the bullish trend in the market, Rajesh Sharma started feeling like buying more shares and bought 200 to 2,000 shares of 8 to 10 companies in the last six months. He bought all these shares for about Rs 3.50 lakh. The market remained bullish and the market value of all the shares deposited with him increased to Rs 5 lakh, then it can be said that he has a portfolio of Rs 5 lakh. This will be called Rajesh Sharma’s portfolio.
Similarly each investor can prepare his portfolio, even if it holds shares of 2 companies or shares of 22 companies. There is a saying that all the eggs should not be kept in the same basket, because if the basket falls, all the eggs will hatch. Similarly, one should not invest all one’s capital in any one company. It would be better if you prepare your portfolio by buying small shares of different companies. The reason for this is that there is less possibility that the prices of all your shares may fall equally in the stock market recession. The prices of your two shares may decrease and the prices of your two shares may also increase. Thus, holding shares of different companies in the portfolio reduces the risk. P.M.S. There are two types of service. In one, you inform the fund management about buying and selling shares of your choice and the fund manager also gives you such advice, whereas in the other type of service, you only have to pay the amount to the fund manager and in which companies he invests that amount. The fund manager himself decides this and gives you returns on it. P. M. S. In case of this, it is important for you to have confidence in the efficiency of the manager from whom you take this service. There should also be transparency between you and the fund manager. Similar services are provided by mutual funds, banks, broking companies, research houses and private companies.
P.M.S. Ten stages of
1. You are willing to invest in the stock market with a capital of Rs 5 lakh.
2. You lack information and understanding for this.
3. Due to being busy in job or business, you do not have time for this.
4. You keep in touch with the portfolio manager.
5. The Portfolio Manager will prepare your portfolio of shares based on your risk appetite/will.
6. You will get returns based on this portfolio.
7. After taking the services of a portfolio manager, you will get returns every year, the rest is the concern of the manager.
8. The portfolio manager will charge his own fixed fees for this service.
9. Market bullishness can be benefited by this service without direct entry into the stock market.
10. With this facility one gets — mental happiness and peace.
Free online guidance
The country’s many investment-related websites also p. M. S. Provides unique service. Although these websites do not manage your funds, they provide the facility to create your portfolio automatically; After accounting for it, they give you its complete record. For example, you own a different number of shares from 12-15 different companies so you register yourself for this feature of the respective website. On that website, you will continue to get information about price changes based on the current market price. ‘Moneycontrol.com’, ‘BSEIndia.Websites like ‘Com’ provide this facility free of charge. Not only this, you will also continue to get important news related to the market and those companies for free.
(i) Build your own portfolio
Suppose you are one of those lucky people who has got a well-paid job. You live with your parents. Spend reasonable amounts of money on clothes, food and entertainment: but despite this, at the end of every month you manage to save some money. On one hand you are worried about your the money is lying idle in the savings account and on the other hand, you have friends and relatives who keep trying to fool you when you talk about investments.
Ignore all these thoughts for some time. Do you remember any incident when someone challenged you to accomplish something that seemed impossible and you were successful in it? You must be agreeing that to reach the winner’s chair, it is necessary to be proficient in that work. There will be many people who will instruct you not to invest in the market in the current situation and will make every possible effort to discourage you from trying. However, there is no dearth of experienced people who know the way to extract profits from investments in the current situation. Here are some such basic rules, by considering which you can create a portfolio that can reach success in the market of ups and downs.
Right portfolio
First of all, it is important to understand that there is no fixed formula to prepare the best portfolio. Uncertainty prevails among investors. In such a situation, the objective is to reduce risk and collect maximum profits from the portfolio. The objective of a best portfolio should be the growth and security of capital.
Divide your investments into different asset categories, as these different segments show different movements when times change. If the portfolio is tilted too much in any one direction regarding financial goals or the products involved, then it is a sign of bad times.
How to allocate?
The amount of money invested in a product depends on your age, income potential, risk tolerance and responsibilities. Also, there are some questions which you should constantly ask yourself. What are your long-term financial goals related to investing? Is your investment safe and liquid? Does it promise guaranteed returns? These are some such questions. When you decide that
If you want to invest in which product then these things of experts can be taken into consideration
• Consider equity: If you look at this in principle, there should be more allocation to equity. Instead of investing their money directly in shares, experts feel that it would be better to enter the market through mutual funds, portfolio management services or private equity funds or a mixture of these three. 25-30 per cent of its portfolio should be invested in Large Cap Equity Diversified Fund and Systematic Investment Plan i.e. S.I.P. Can be given preference.
• Debt: Investors through debt based mutual funds or reputed companies and A. A. A. You can consider investing in bonds of ranked firms. Other options you have, F. D. Or government securities or income funds are included. Although debt products are considered safe bets in the portfolio, if you have less years left in your job, investing less in equities and more in debt is unlikely to give you much better returns in the current market situation. Gold and Real Estate Both gold and real estate are great means of investment, but investors should consider financial products or derivatives in these segments. Gold E. T. F. They are comparatively more liquid and also provide relief from the risks associated with keeping jewelery coins. Real estate funds may have fixed lock in periods, so they may also be considered.
Reproduce portfolio
There are some tips for those who have burnt their hands after investing before diving into the stock market. Running away from the market immediately is not the right path. If the investor can bring back additional money then this should be done and that amount should be divided into different categories in such a way that they give good returns.
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