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Financial Portfolio - Example Of

Authored On: 15-Nov-15

Last Modified: 15-Nov-15

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The article details an example of financial portfolio to illustrate the point of diversity that investors must bring into their investments.

The article shows an example of financial portfolio for an investor as an example. Example is shown to emphasis the point of having diversity in the financial instruments across issuer, type of underlying instruments (stocks, bonds etc), and various aspects related to same. Please note that this is not the SAMPLE IDEAL portfolio. Read the important notes at the bottom of this article carefully to understand what this article is NOT.

Long Term Government Bonds through Mutual Funds (MFs) - Dividend Option - Providing High Security and Regular Dividend Income

PSU Bank FDs with Varying Duration & Interest Rates including Tax Saving FDs

Short Term Government Bonds through Mutual Funds (MFs) - Growth Option - Providing High Security and Benefits from Interest Rate Movements

MFs investing in Corporate Bonds with AAA(+) Ratings - Growth Option

Liquid MFs - Growth Option - Providing Tax Benefits (compared to Dividend Option) and Liquidity

Liquid MFs - Dividend Option - Providing Very High Liquidity At Marginal Expense of Dividend Distribution Tax Outgo

Tax Saving PPF - In The Names of Self, Spouse and Children

Arbitrage MFs - Dividend Option - Providing Liquidity, Tax Benefits on Par with Equity Funds (for Capital Gains & Dividends), Relatively Risk-Free Being An Arbitrage Based and for Regular Dividend by Choosing Monthly Dividend Option

Private and Co-Op Bank FDs with Varying Duration & Interest Rates, Distributed Across Different Banks

Top 30% of Large Cap + Top 30% of Small Cap Stocks, selectively timed to buy with intermediate and long term targets

Stocks - Emerging Companies with Value Propositions, selectively bought using fundamental and company specific analysis, long term goals and prospects

Warrants - Offered by Nifty Companies - as Longer Term Call Options

Nifty and Junior Nifty Based ETFs - Purchased with selectively timed entry and exit points

Index Options as Hedge - Bought at Selective Timings - Call or Put or Both - T0 Hedge Against Unexpected Market Rise and Fall Respectively - As to Contain Opportunity Loss and Capital Loss respectively

Notified Tax-Free Bonds

Positions in Structured Financial Products offered by Private Bank -  - Products Based upon Interest Rate, Nifty Index - High Risk, High Reward and High Value Investment

Important Notes

 

  • This financial portfolio is NOT necessarily a sample ideal example.

  • Many of investments shown above may not be suitable for certain investors depending upon their risk profile and other background details.

  • This example includes only financial portfolio but does not include other investments such as real estate, precious metals such as gold among other, which investors may find suitable or necessary.

  • Insurance of different type of very essential tool for each individual's financial planning. This example is currently not addressing insurance but reader should consider that to be essential element in their financial plan.

  • Investments in Futures, Options and Structured Products are VERY RISKY and are not for ordinary investors. These are instruments only meant for high net worth individuals that too with considerable knowledge about market internals among others.

  • Thus this sample is meant to only show and emphasis need to diversity your investments across range of criteria. This sample is only a beginning for you to start your thought process and can only form one of the several other inputs to your financial planner. Always choose your investments based on guidance from financial planners. Read Terms of Use and Disclaimer at bottom of page carefully.

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