How to create an Integrated Investment Portfolio

How to create an Integrated Investment Portfolio

It takes the perfect recipe for a good enough meal and the best piece will give you the right suit. Unlike investment, the right investment options options continue to create a coveted portfolio that optimizes returns and minimizes risk.
For investors, it may sound like a fairy tale to get a perfect portfolio every time. There is a lot of dynamism in the market and factors keep changing all the time. What might be good today might not happen after a year. Because awareness must be paid attention to market volatility and overall economic prospects that outline a good investment portfolio.

How to create an Integrated Investment Portfolio

It is an art to get the perfect integration of investment options like Fixed Deposito (FD), Mutual Funds, Gold and Real Estate. While making choices, it is important to be guided by basic parameters such as efficiency, diversification, risk and return, and overall cost. It is against this background that the above-mentioned options have been analyzed.

Materials for Portfolio

FDs’: Fixed deposits with banks or FD Banks are ideal for investors with low risk appetite. Best suited for periods up to a year or less. It is offered by the bank for a minimum of 30 days but the best time frame for investment is between six months and one year. While investing in fixed deposits, it should be remembered that early withdrawal can attract penalties so the investment horizon needs to be resolved first. When the market is experiencing volatility, FD is the best place to park the funds. Despite the yield, post tax is only about 7%, FDs’ will protect against capital erosion.

Investors can set aside the percentage of their corpus for FD investment. The actual percentage to be invested will depend on market conditions, risk trends and overall investment plans. How to create an Integrated Investment Portfolio

Mutual Funds: Mutual Funds are one of the most attractive investment options available. They can provide stability and growth. This gives small investors the opportunity to invest in stocks under one umbrella of funds, and they are handled by professional investment managers who invest in the market on a number of parameters. The main benefit of mutual fund investing is that they provide a safety blanket for investors’ funds.

Diversification is offered and funds are handled by fund managers in a transparent manner.

For this option too, the percentage of the corpus to be invested will depend on the priority, the stage of life in which the investor is and of course a risk trend.

Insurance: The insurance scheme offers a perfect risk management plan. Online term insurance provides protection against financial loss from the sudden death of the breadwinner. Health insurance policies deal with unexpected hospitalization costs. Property insurance covers you from the risk of natural hazards that destroy your property.

Gold: Inflation is a deterrent or disincentive to certain investment choices. Gold is one of the options that hedge against inflation. Over the period of time the return of gold investment is equal to the rate of inflation. Experts feel that the value of gold is inversely proportional to the value of equity, so that when the value of gold increases, equity markets are in a recession, as seen in 2007.

As with some other available investment options, gold as a component in the investment portfolio helps reduce the impact of market volatility.

Real Estate: Investing in real estate is for those looking for long-term profits. Investing in a property in India is generally very profitable. There is a growing need for real estate properties over the past few years. Investing into real estate is likely to generate good returns for investors in the long run regardless of short-term stagnation.


There is no single formula to get the best results from your portfolio. The type of return to be achieved can vary greatly based on the ability to take risks. The priority of life will also change the ratio of component portfolio.

Each unique situation and individual investor must decide on his exposure in a particular asset class. The customized mix of the options discussed above will provide the best opportunity to maximize profits and minimize risks.