How To Get Your Portfolio Up And Running

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.


Why You Should Review Your Investment Portfolio

Most first-time investors invest and forget, believing their money will work it out themselves. But having planted the seeds, your investment now needs tending to grow. Hence, monitoring your portfolio through portfolio management services could be a crucial step in achieving your goals. Do not ‘set it and forget’Once you create an investment portfolio, it needs to be well managed. You could manage it with the help of a portfolio tracker as an online tool. Portfolio management in itself is an art that involves building and managing various investments to reach the desired outcome.Usually, long-term equity investments facilitate wealth creation owing to its high returns. While this is true, the concept of ‘set it and forget it’ may not be ideal. You need to actively manage the portfolio with an online portfolio tracker to outperform the market index. Here are some steps towards a successful portfolio management:What is portfolio management services? Create a roadmap You need to plan ahead before building an investment portfolio. Take a look at your financial situation, figure out your risk taking ability, and identify your goals. Have a plan in mind for every purpose. Planning makes your investing journey smooth. Invest based on your goals and risk appetite The important thing is to decide asset allocation as per your risk appetite and goal. Asset allocation helps you decide what proportion of stocks, bonds, gold etc. to invest in. Right asset allocation aims at balancing out the risk and return in accordance with your personal financial goal. Along with asset allocation, it is also important to make the right pick of assets. For example, when it comes to choosing equity shares, make a diversified choice. Invest in shares of different sectors as no particular sector performs well all the time. Constant monitoring To be an active investor, you need to monitor and review your portfolio periodically. It is also important to keep a tab on emerging opportunities in the market. With changing economic conditions and rising competition, it is crucial to keep a continuous watch on your stock. Rebalancing Active rebalancing is the key to staying on track with the right asset allocation strategy. Rebalance your portfolio in accordance with your financial situation, goals and risk appetite. Follow a disciplined approach and keep stirring your portfolio to make the most out of your investments. Seek expert help If you are hard-pressed for time, unable to handle it all by yourself and believe you might need an expert eye to oversee your portfolio, seek the help of a financial expert. After all, deciding the right allocation needs knowledge and expertise!ConclusionThrough the use of benchmarks, you can get an idea of your portfolio's performance in relation to the stock market. At best, you expect your returns to mimic market ups and perhaps also exceed the relative norms. This is why smart investing is crucial to portfolio success.Smart investing requires proper planning, right selection and constant monitoring. By using a stock market portfolio tracker you can pursue pre-set goals. Although there is no sure-shot formula for guaranteed success, a disciplined investment approach can potentially elevate the chances of higher growth in the long run.

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Budgeting is different from financial planning

What if I say that trees and leaves are the same thing? You would argue, and rightly so, that they are not. The leaves are a part of the tree but they are different.The same difference holds true for financial planning and budgeting. A lot of people may think they are interchangeable but that is not the case. Budgeting is an exceptionally critical component of a financial strategy. It assesses how much you earn, evaluates how much you consume, and assists you in spending lesser than your income. On the other hand, financial planning, considers your existing financial condition and creates an extensive portfolio by forecasting prospective incomes, asset values and withdrawal plans based on your available financial data.To understand what is budget, it is important to run the rule over financial planning and budgeting first and then find out how they differ. Here we understand the difference between a budget and a financial plan.What is financial planning?Financial planning prepares your financial future, helps you meet your life goals, and gives you financial independence. Effective financial management includes all aspects of your money, including your income, expenditure, investments, and taxes. What is budgeting in business?Budgeting tells you how much you can spend basic your monthly income. For an average household, a monthly budget consists of the expenses incurred on grocery, children’s education, utilities, lifestyle expenses, etc. What is the difference between a budget and a financial plan? Scope Financial planning is a broad concept. Identifying your goals, saving your income and investing are a part of this. Budgeting is one part of the whole financial planning process. It represents a single step just like leaves represent one part of the tree. What they represent Financial planning is based on your financial goals and helps you in achieving them. Budgeting, on the other hand, gives you an idea of your spending pattern and helps you in identifying unnecessary expenses. Horizon A financial plan is devised to take care of your future needs. Budgeting, however, is a short-term concept. It is, generally, done on a monthly or an annual basis. Use Financial planning determines the quantum of your investments. A budget is done to curb possible overspending. This is one reason why budgeting is part of a financial plan. Otherwise, you may never be able to save enough to fulfil goals. To sum up Though budgeting and financial planning seem similar, they are very different. Despite being different from each other, budgeting and financial planning are complementary to each other. Budgeting helps you save while financial planning uses the saved amount to invest in order to help you meet your financial goals.

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