Professionals in the industry always manage the investment portfolios of their clients, as we generally perceive it. Yet, have you ever wondered if it is possible for you to do it like these pros? Here’s how. 

What You Should Keep in Mind

When it comes to managing your portfolio like a professional, there are some things that you should not forget. 

• Zero in on investment allocation strategies first. 
• Figure out the long-term (7-10 years or more), mid-term (best investment plan for 5 years), and short-term (1-3 years) strategies. Divide your financial goals into these three buckets accordingly. 
• Always keep your risk appetite and future inflation in mind at the planning stage. 
• Choose adequate insurance coverage in the life and health categories first. 
• Focus on creating emergency corpuses with easy liquidity for sudden requirements. 
• The remainder of your income can be invested as per the blueprint given above. 

How to Manage the Portfolio Expertly 

Let us look at a few tips to help you manage your investment portfolio better. 

• You should keep rechecking your portfolio and ensure that it is completely in sync with your financial objectives. 
• Diversification of investments and tweaking allocation strategies to lower risks. 
• Boosting overall liquidity and tax efficiency. 
• Separately managing short and long-term portfolios. 
• Diversifying among equities and debt-based market instruments, including bank deposits, PPF, gold, real estate, ULIPs, child plans, retirement plans, and all other investment avenues. 
• Changing equity-debt allocation with age and evolving financial goals. 
• Reviewing portfolio performance and changing funds/investment options that are not performing well at a given point in time. You can also do this based on market fluctuations with a view towards continuing to earn decent returns or safeguard your investment. 
• Portfolio rebalancing thus becomes immensely important in this scenario. 

Investing Time and Effort to Reap the Rewards

Once you build a strategy and all the basic elements are clear to you, try and maintain it throughout the whole investment duration. Make sure that your investments do not compromise your basic necessities, costs, and even your highly liquid emergency corpus, which should have at least 3-6 months of your net income. Keep your investments intact in long-term avenues even when there are temporary market fluctuations. Do not be in a hurry to sell at a loss. Rather, tweak your strategies and funds to ensure that your returns are steady. 

Also, read up as much as possible on what’s happening in the market, the average returns from all your investment channels, and other trends. This will give you an idea of how to navigate the portfolio towards achieving your financial goals. Another thing worth remembering is that you should start as early as possible. The earlier you begin your investment journey, the faster you will reach your goals and amass a sizable corpus by retirement after having ticked off all the other goals in the meantime. Follow these tips and start managing your own portfolio like a pro!