Don’t take risks beyond your capacity
If you are not paying enough attention to your portfolio, you are putting yourself at a very high risk. Risk profiles vary with the individual. If we talk about mutual funds, then our mandates keep changing and keep moving to other categories. They do not bind themselves to the original risk profile. NPS also keeps changing its investment rules.
Avoid liability of more tax
Very often one mistake is found in people’s portfolio that is mistake. Higher tax liability in investment income. Many people do not take into account the expressed tax liability while opting for the investment option. Due to paying tax later, the return is very less. Even now, you should choose the option of investment, these things must be taken care of.
Fill the Gap of Liquidity
You should pay special attention to liquidity in any investment portfolio. Investors are very aware of returns and safety. But forget one thing. That thing is liquidity. Your portfolio should have sufficient liquidity at any given point of time.
avoid high cost
With popular investment plans, who have been investing. Don’t disregard them. Traditional insurance plans that come. Which come with huge costs. Which eats up a part of your premium in the initial years. For the first year the premium is charged. They can range from 60 percent to 90 percent. Along with this, 15 to 20 percent comes in every renewal. Along with this, these plans come with heavy surrender penalties.
Don’t miss out on profits
If you do not check your portfolio regularly, you are not taking the right step. There is a high probability that you can lose your profits. Timing the market, stopping the investment and resuming the investment is one such step. That can hurt your portfolio. If you invest in Equity. So it is good to have target and stoploss. With this you can reduce the risk of your investment.