Portfolio Creation

At Logicals, one of the important tenants of investment management followed is the need to diversify portfolio of customers. Diversification of portfolio is only the first step towards creating a healthy investment management ecosystem. The diversified portfolio should be rebalanced, at least once every six months or by applying advanced mathematical models to the portfolio.

The typical portfolio of the average Indian Investor is largely skewed to only a couple of asset classes such as Real Estate, Fixed deposits and Equities. Other important asset classes such as Money markets, fixed income, alternative investments are often not part of the portfolio. Often liquidity of the asset class is ignored before investments are made.

It is important to understand the risk appetite of the individual before creating a diversified portfolio that suits the individual's long term financial goals. The portfolio should be a mix of asset classes including Money Markets, Fixed Income, Equities, Commodities and Alternative investments.