Experienced financial analysts and bankers believe in diversified investment portfolios for the investor. The thumb rule says that not all the mangoes to be put in one basket. A senior banker, associated with us, recommends the following portfolios as an ideal investment and well-managed portfolio:

• Real Estate – safe and sound – long-term investment – fetches good and handsome returns over a long-period of time, undoubtedly – good for long-term investment.


• Life Insurance – Term Insurance is absolutely necessary – This is so, in case of the earning member of the family – Assured amount should relate to the earning-capacity of the member – Goals should be set for good insurance policies reaping modest returns but good/dependable sums of money in case of eventualities, such as accidents, hospitalization, and other unforeseen circumstances.


• Mutual Funds – Mutual Funds are suggested to investors who want to balance risk and return. Direct investment in stocks and commodities require a high amount of knowledge of the stock and commodities market and other nuances related therewith. If invested in mutual funds, well-qualified and professional fund managers manage the funds of the investors and give good returns. Also, risk is distributed along a large number of small investors. So, mutual funds are suggested for long-term gains with modest or reasonable returns.


• Fixed Deposits – Fixed deposits are required for contingency funds. These funds are highly liquid and can be withdrawn at very short notices. The amount put in this portfolio should be carefully calculated and invested so that in the short term the investor should not feel suffocated for liquid funds. The thumb rule again here is the investor should have at least three months fund requirements for maintaining his personal financials, in the form of Fixed Deposits.


• Gold and Silver – These are very good investment opportunities. This gives excellent returns over a long period of time with absolute security of investment to the investor. These metals can also be converted into liquid cash at very short intervals as most of the financing agencies lend against this commodity immediately.

A good portfolio contains one or more or all the above items in the right proportions. The correct proportion depends on one’s own requirements and necessities. The investor may take the help of investment consultants / bankers / financial analysts in arriving at the correct / right portfolio.