Covering All Bases: Building a Diversified Investment Portfolio

Diversed Investment Portfolio

The fact that you are investing your hard-earned money in the market already confirms that you have a good idea of how important it is to put your money to work in order to try and build wealth and achieve a good return on your investments.

An integral aspect of your plan is to try and grow your investments. Regardless of the tenure of your investment, be it mid or long-term, it needs to be diversified. It shields you from any adverse impact caused by a swing in values across one particular asset class. This diversification will help maximize your chances of achieving positive returns.

A good way of doing that would be investing in a basket of mutual fund schemes which have been fully researched.

Someone to take care of your investment decisions

The problem for many of us is that although we may have a fair understanding of investment products and how to invest money in the stock market, picking the right stocks may not always be an easy task.  Thus, Mutual Funds can be a smart choice as they provide a diversified basket of stocks.

Companies like ICICI offer their clients a range of research backed baskets of top rated mutual funds under One Click Investment.

One Click Investments work on the principle of PACE which is a combination of Performance, Analysis, Customisation and Ease. All mutual fund baskets are backed by the efficient research team at ICICIdirect that help you achieve your financial goals based on the mutual fund basket selected by you.

In a nutshell, mutual funds allow you to gain exposure to a wide range of investment opportunities without having the worry of making individual stock-picking selections as One Click Investment takes care of the investment decisions.

A range of mutual fund baskets

Mutual Fund Basket

This is perfectly illustrated when you look at how has set up their One Click baskets which are offered to clients with no transaction fees.

The Maximizer, for example, is designed to provide you with a diversified portfolio that gives you exposure across the spectrum of equity schemes. Maximizer would be a good fit if you are looking to try and achieve a fairly rapid growth trajectory for your investment over a period between 5 and 10 years.

The Stable portfolio is all about taking things steady and a key feature of this portfolio is that it comes with built-in stability as a result of its higher allocation towards Debt schemes and less participation in equities.

The 50-Fifty portfolio does what it says on the tin by splitting your investment 50-50 between equity and debt in order to get a blend of stability and growth.

The Secure portfolio comes with a safety net because of investing in quality corporate bonds and shorter-term debt instruments.

The Builder portfolio is inclined towards equity (60% to 80%) and debt (20% to 40%). This is ideal for investors seeking the growth of equity investments with comparatively lower volatility in their returns.

Finally, the Tax Saving portfolio should need no explanation as its fundamental aim,  is to invest in tax-efficient schemes that allow you to keep as much of your money away from the taxman as possible by using recognized tax saving opportunities.

Highlighting the ICICIdirect One Click approach perfectly illustrates how you can put your money to work for you while still managing to retain an element of control over where your cash is invested so that you are comfortable with your level of risk exposure.

Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

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