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How To Get Your Portfolio Up And Running

Every investor dreams of success. But, investing is not an easy art. There is no dearth of strategic portfolio management advice around promising instant success. But how does one sift through the clutter to get the right advice? Unfortunately, most individual investors fail to manage their investment portfolio on their own. With volatile markets and a glut of information, there is the danger of making a catastrophic move. To safeguard one’s portfolio and pre-empt risks, it is important to take the right kind of precautions. Here we understand what is strategic portfolio management.

First things first, take control

In spite of managing your own investment portfolio it is not bringing you the kind of returns you had in mind, or appears to be stuck, the primary thing to do is not to panic.

Find out the cause and identify investments that are contributing to overall non-performance. Take requisite action on your portfolio, keeping in mind your long-term perspective. Do not let fear rule your decision making abilities. Clarity on the situation and a few portfolio management tips can help you decide when to hold them and when to sell.

Let’s look into some investment strategies and portfolio management tips that can help you decide:

  • Average down strategy

Average down strategy aims to reduce your average cost in a stock. You buy additional units of stock that have slipped in price to average out the cost.

Let’s take an example to understand this. For instance, you purchased 1,000 units of ABC stock at Rs. 50 per share. The price per share then drops down to Rs. 45. Now, if you buy additional 1,000 shares at Rs. 45, your average cost will come down to Rs. 47.5. Similarly, this strategy could also be applied to mutual funds to average out costs.

This average down strategy strategy should be applied only if you have researched thoroughly on the company whose stock you hold, and convinced about its future potential, having implicit trust on the management and the company’s fundamentals. With a strong belief in the company’s fundamentals, you can continue to hold it for a long period of time by averaging down the cost.

  • Sell the losers

Fact-finding and doing necessary groundwork on the company is useful in ascertaining the company’s future potential. Get rid of the falling investments if the price has dropped and is not likely to recover.

This strategy works well when the stock price has been on the wane and the company’s fortunes seem to be under threat. There is no point in holding on to a stock that is underperforming. 

Mistakes help you become wiser, and the investing process gets better with your learning. But, learning to avoid mistakes makes you a smarter investor. To be a successful investor, you need to have a clear methodology.

Here are a few portfolio management tips to make your portfolio work for you:

  • Draft a solid plan
  • Formulate disciplined strategies 
  • Create a diverse mix
  • Have a logical reason for every decision
  • Periodically review and rebalance 
  • Do not let your greed and fear drive your investment moves

To design, strategize, implement, manage and rebalance your portfolio rightly, you need to have the time, self-drive and most importantly extensive experience. The question is, would you be able to do it all by yourself? Do you have the requisite knowledge, competency and skillsets to manage your stock portfolio correctly?

If you are hesitant to do it by yourself, there exists a tailor-made solution called portfolio management services that bring in expertise, knowledge and professionalism to achieve specified goals.


To make your portfolio grow productively, follow an investing style that suits your risk profile, asset allocation, financial goal and time horizon. To avoid irrational decisions, conduct further study on your investment choices. A focused portfolio along with a disciplined approach is the key to success.