My Investment Strategy

I have been writing a lot about where and how to invest and why to invest. But today I am going to tell you about my investment strategy. I like to diversify, if you talk to any professional financial Consultant, he will tell you that diversification is the key to any successful portfolio. A concentrated portfolio, can be of very high risk, since if at anytime god forbid the stock or the investment goes down, its going to take down your entire portfolio with it. Let me tell you about my Portfolio –

1. Stocks – I have invested across sectors like banking, IT, Power, Infrastructure etc., I hold stocks in at least two companies in each of the sectors. But one mistake that I have done of course is that presently I hold a very small portfolio and have just a few shares in each of the companies, which should be avoided. This way any gain in any sector does not help the overall portfolio. Well I am planning to correct that shortly.

2. Debt – I have bought things like KVP, NSC, and Bank FD’s etc. Invested in PPF account and also have a EPF account that my employer holds (Yes I work).

3. Gold – I have invested a little money in Gold ETF and have also bought physical gold in the form of a coin very recently as an investment.

4. Land - Well yet to make any significant investment in this part of my portfolio although have invested a small amount of money in a yet to be developed colonies but am planning on buying atleast one property shortly.

5. Mutual Funds – I have invested in only two Mutual funds through an SIP route, since I mostly like to manage my own money although many people tell me I should get more exposure through this channel. Lets see in the future.

6. ULIP’s – Unit Linked Insurance Plans is another investment strategy that I have adopted, wherein I have bought one ULIP and make a monthly deposit in the same.

7. Insurance – OK this is where I am focussing presently since I have come to believe I am underinsured. Although I have a couple of Endowment plans and the ULIP mentioned above, I sincerely believe in term Policy only and am planning to increase my investment in the same since that secures my family’s future.

Well that’s about it about my confession, I don’t know how many people like my investment strategy or what they have to say about the same but presently I am happy about it except for a few glitches here and there which I plan to fix very soon. Keeping my fingers crossed. Do write to me what you think about the same.

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