How to create the financial portfolio

What is Financial portfolio:-

Grouping of financial assets like Bonds, Commodities, stocks, currencies and cash equivalents, as well as their fundĀ counterparts, including mutual, exchange-traded and closed funds.

A portfolio can also consist of non publicly trade-able securities, like real estate, art, and private investments. Portfolios are held directly by investors and/or managed by financial professionals and money managers.

source: Investopedia

Creating Financial portfolio in India

I have invested in the following assets and will recommend others to invest at-least these assets.

  • Bank Accounts
  • Fixed Deposit
  • Recurring Deposit
  • Public Provident Fund
  • Stocks
  • Medical Insurance
  • Term Insurance
  • Mutual Funds

Bank Account

Individual should have savings account in minimum of 3-4 banks, this will provide flexibility, security and multiple other benefits. The only drawback of having multiple bank accounts is to identify the interest given in financial year for income tax calculations, and remembering the security details of multiple banks. One should have atleast one minimal Nationalized bank, understand there services are restricted, but some service providers requires DD only from these nationalized banks. One such service provider is CGHIS.

Fixed / Recurring Deposit

One should create multiple RD / FD to prepare funds for the goal account. ICICI bank offers the same functionality. Really a powerful tool for novice users. Some examples of Goal accounts can be

  • Annual fee for kids
  • Annual Travel Trip Charges
  • Home expenditure