Understand the best Readmade Investment Portfolio
Table of Contents
Why You Need to Know About the Best Readymade Investment Portfolios
Is there any one among us who has not heard of the importance of saving? It is highly likely that some of your most frequent childhood, and college-time conversations with your parents revolved around money and the benefits of saving it. Over-spending was considered a problematic trait and we have all been prompted to save our pocket money to purchase expensive things, like toys and comic books as kids and cool gadgets later on. For 25-year-old Anjali, saving was a habit she developed as a teenager, and when she began working, she diligently followed her parents’ advice and saved about 30% of her income each month. However, her savings languished in her salary account as she was not sure of where to invest. She considered the time-honoured tactics of parking her funds in bank RDs and FDs but was disheartened by the low interest rates on the instruments. She wanted to try her hand at investing in the market but was always scared of getting burned. Surely, Anjali is not the only one among us keen on investing yet unsure of the investment options available.
Why is investing important?
Did you approach your bank only to be dismayed by the interest on their FDs? Have you looked at the recent inflation statistics and wondered how an FD can help you safeguard your savings from corrosion? With oil and commodity prices peaking, the consumer price index has come in at 6.95% in March 2022, a 17-month high capable of negating the interest earned on FDs offering 6% to 6.5% a year. Investing is an imperative now, if you wish to protect the value of your savings while accumulating wealth for the longer term. Further, investing is also a necessary step towards gaining financial freedom and security for the future. However, as Anjali and many of you would have realised by now, investing is fraught with its specific set of challenges and difficulties and, unless you tread carefully, you could end up losing all of your savings.
Challenges along the way
New and even experienced investors have been known to fall prey to a number of challenges while on the investment journey. Due to these challenges, investors end up making sub-optimal investment decisions that will defeat the very purpose of starting the investment journey in the first place. Some of these challenges could include:
- Unknown territory: Many of the investors today are not aware of the nitty gritty of the market. They do not have sufficient experience or market expertise to make wise decisions and turn their investments into profitable ventures. While learning about investing is definitely a great first step towards building robust long-term portfolios, some things are best learned with experience.
- Information overload: Surely you know of the number of investment guides and handbooks doing the rounds. Many of us have spent time perusing these, only to end up confused with the variety of advice on offer. Sometimes, these half-baked guides can also lead you straight to trouble.
- Over diversification and limited capital: At the start of your journey, you are in possession of a limited amount of money and the number of investment options available, and the tales of their attractiveness, may prompt you to over-diversify and end up earning poor returns. While we all understand the benefits of diversification, few people understand the risks attached to overdiversification.
- Bad timing and poor decisions: While it is almost impossible to time the market, many first-time investors are also plagued by bad luck and a lack of proper knowledge. This terrible combination leads to bad investment decisions caused by timing the market poorly, as indicated by the plunge in some of the recent IPOs.
With so many potholes along the way, what is the best way for you, as an investor, to proceed? Anjali stumbled upon the concept of readymade investment portfolios as she searched for options and she has not looked back since.
Best readymade investment portfolios
What does the term best readymade investment portfolios stand for? How do you ascertain which are, actually, the best readymade investment portfolios available?
Let’s start with the first rung of the ladder. What are readymade investment portfolios?
Readymade investment portfolios consist of a combination of different investment instruments, grouped together under one fund. These portfolios are created and curated by financial experts and offer new investors the possibility to invest wisely while ensuring strong diversification and inflation-beating returns. The best readymade investment portfolios offer you an optimal combination of risk and opportunity, balancing the two to help you grow your wealth while participating in the development of the economy. More importantly, since these are curated portfolios, they give you an opportunity to invest in
The best readymade investment portfolios help you overcome all the challenges faced by new investors, while charging only a nominal commission or fees for the services. Further, the best readymade investment portfolios are also highly customizable as these can be tailored to your investment profile and outlook. With a strong focus on the fundamentals of the market, and astute technical analysis, best readymade investment portfolios are helping many new age investors like Anjali create and grow their investment portfolios without fearing the market.
If you are ready to invest your savings and chart a successful investment journey, readymade investment portfolios can help you make a solid start. Now, there is really no need to worry about trends or sectors, or even timing the market! Easy investing is here to stay. And a viable option for you to explore could be Wealthbaskets. A Wealthbasket is simply a specially curated portfolio of stocks that follows a particular theme, strategy, or even a sector. With a Wealthbasket, you get the investment exposure you desire along with the guidance that you need. A win-win situation.
Frequently Asked Questions
1. How do ready-made portfolios differ from mutual funds?
While both offer diversified investments, ready-made portfolios are curated collections of assets tailored to specific themes or strategies, allowing investors to align with particular market views. Mutual funds pool investors’ money to invest in a broad range of assets managed by fund managers.
2. Can I customize a ready-made portfolio to suit my personal investment preferences?
Some platforms may allow limited customization, but generally, ready-made portfolios are pre-structured by experts. Investors can choose portfolios that closely match their investment goals and risk tolerance.
3. What are the costs associated with investing in ready-made portfolios?
Costs can include management fees, transaction fees, and other charges. It’s essential to review the fee structure of the specific portfolio or platform to understand the total expenses involved.
4. How liquid are investments in ready-made portfolios?
Liquidity depends on the underlying assets within the portfolio. Generally, investments in stocks and ETFs offer higher liquidity, allowing investors to enter or exit positions relatively easily.
5. Are ready-made portfolios suitable for short-term investment goals?
The suitability depends on the portfolio’s strategy. Some ready-made portfolios are designed for short-term gains, while others focus on long-term growth. Investors should select portfolios that align with their investment horizon.
6. How often are ready-made portfolios rebalanced or updated?
The frequency of rebalancing varies by provider and portfolio strategy. Some portfolios are rebalanced periodically to maintain desired asset allocations, while others may adjust holdings based on market conditions.
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