Investment portfolio is a portfolio consisting of different asset class – stocks, bonds, real estate, gold and so on. Based on the risk tolerance and the financial goals, investors look forward to gain higher returns by adding securities to their financial portfolio. To gain a better understanding at constructing an investment portfolio, it is advisable to consult a financial advisor who will guide you in a proper manner for better profitability.

In order to achieve your long term goals by managing your investment portfolio, there are certain aspects which needs to be considered first. Let us understand them in detail.

How to Achieve Long Term Goals with Portfolio Management?

Managing your portfolio in an efficient manner is the potential way towards building your wealth. To gain better returns over time, it is advisable to diversify your investments into different financial instruments. Thus, you can successfully achieve your long-term goals by periodical investment analysis and portfolio management.

Let us understand in detail how to achieve long-term goals with portfolio management:

• Right investment choices:

Before making any investment decisions, study the financial instuments first. Understand the rate of returns and check how it can help you towards your long-term investment goals. Also, keeping a track of the market whereabouts is necessary, to understand the effect of it on the instruments you are investing in.

• Track investment performance:

Regularly analyze and track the performance of the instruments which you have invested in. This will provide you with a broader perspective over your investment decisions against your long-term goals.

• Invest regularly:

A disciplined investment practice is necessary to build your investment portfolio. This will help you to achieve your targeted financial goals in a seamless manner. You can consider investing through SIPs in mutual funds to regularise your investments.

• Managing liquidity:

We cannot predict the need for the fund which may arise at any point of time. But, with proper portfolio management, you get the flexibility of choosing the investment avenues preferably securities, which can easily be sold off when the need for it arises.

• Risk and reward:

It is necessary to strike a balance between the risk and rewards generated by the investment avenues. Avoid over investing in one particularly instrument, diversify your portfolio and limit the risk which may directly affect your portfolio.

How to manage an Investment portfolio?

To manage your investment portfolio in a competent manner, it is necessary that you keep track of your investments. This will help you from causing any money mistakes which may lead to a disaster.

Follow these steps to stay aligned with your investments and manage it in a proper way:

• Analyse your portfolio and figure out the financial instruments which are directly affected by the market conditions – stocks, mutual funds which are tradable; and other instruments which are not directly affected by the market – bonds. It is recommended to have a balance between both to minimise the risk factor and increase the revenue generated.
• Consider the tax implications on the portfolio that you are holding. Add products such as Insurance, tax saving mutual funds and so on, to get better tax benefits.
• Keep track of the market and study the research reports while investing in markets or market related instruments. A proper background study will help you to make lucid investment decisions.

Once the roadmap for your investment portfolio is created, it will be easy to align it with your long-term goals. Ensure that continuous monitoring is enabled and appropriate changes are made to your investment portfolio whenever required. Set a benchmark for your investment and regularly evaluated the portfolio performance on a risk-adjusted basis to achieve your long-term goals.

Conclusion:

Keep track of your money, invest regularly and stay aligned with your goals. This will help in managing your investment portfolio and successfully achieve your long-term goals.