How to create the best investment portfolio?
Dear Friends, Investment is very important but even more important is investment with an objective to create a balanced portfolio. If you invest in haphazard way it will give you serious troubles at times when the asset in which you are investing is not giving a good return. For example : If you are very aggressive investor and keep investing all your money in Share market and do not make investment in FD or other debt instruments , then you need to depend on market to be on high to get a decent return. You cannot withdraw your money anytime. You need to time the market and it is very tricky. Second scenario, you are very conservative investor and you invest all you money only in FD. Then the biggest loss you will have is you will get a meager return in actual terms. With an average inflation of 5%, your FD giving a return of 7-8% actually gives you 2-3% of return. And if your total interest income is more than Rs. 10000 in a financial year then you need to pay tax