Fri. Dec 17th, 2021
How to manage Financial Portfolio

In this article will cover following points, and trust me it will help you to better manage your portfolio

  1. What is Financial Planning
  2. How to track Financial Portfolio
  3. List of sub Topics of Financial Planning

What is Financial Planning

Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

In simple language, understand individual & family goals, and divert income in such a way that will optimize the goals. In addition, this will help individual & family to reduce risk to achieve these goals.

How to track Financial Portfolio

Most of us, has more then once assets, which most of the times makes it difficult to access, how much network an individual / family has at any moment of time.

Take an example, for a family of 4 members (2 Adults, 2 kids), they will have minimum 6-10 bank accounts, 2-3 Demat accounts, 8-10 Direct mutual funds account, 4-5 Insurance Policy, 1-3 Gold bonds, 1-3 Property & many more. In total family has ~30 different financial assets, which is pretty huge. In addition, one has to remember multiple user name and passwords, which adds another complexity to come up with Net Assets at any moment.

There is an easy way to handle your assets effectively, using an excel sheet, as displayed here. In this excel sheet, you can save username & password, Account details, Financial Assets, Asset Type, along with available balance on specific date. Later on once you have data then you can analyze where you need more investment that aligns to your goal.

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Take an example, If you have girl child below 10 years, then you need ~40-60 lac for her marriage, so you can think about opening a SSA account and deposit 1.5 lac per year in it, along with investing in Mutual Funds.

List of sub Topics of Financial Planning

At very high level it can further broken down into below 10 sub topics, which will be covered in upcoming articles.

  • Manage your Money
  • Regulate your expenses wisely
  • Maintain a personal balance sheet
  • Dealing with surplus cash judiciously
  • Create your personal investment Portfolio
  • Planning for Retirement
  • Manage your Debt wisely
  • Get your risks covered
  • Planning your Estate
  • Planning your Taxes

Author: My name is Nitin Gupta. During my free time, i support few NGO, in promoting Financial & Digital knowledge to Society.

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