Investments are a great way to put your money to work and secure your financial future. While most people are aware of the potential returns, they refrain from investing due to market volatility and investment risks. This is why a well-diversified financial portfolio is key. Have you ever wondered if your financial investments are actually working for you, or are they falling behind? Many of us are so focused on growing our wealth that we forget to ensure whether our portfolio is truly ‘healthy’ or not.

If you’re unsure about the status of your investments portfolio, it might be time for a ‘financial check-up’. We take a closer look at the concept of portfolio management, and how to optimize your investments like a pro. 

• What is Portfolio Management?

Think of portfolio management like running a restaurant. You wouldn’t serve just one single dish, right? Instead, you’d attempt to offer a diverse variety of dishes that cater to different tastes. Similarly, a well-diversified portfolio may include a combination of stocks, bonds, derivatives, cash, mutual funds, insurance, and fixed income instruments like fixed deposits. With South Indian Bank’s fixed deposits, you can enjoy attractive interest rates, and hassle-free investments, designed to boost your financial goals.

• Practical Ways to Check if Your Financial Portfolio is Healthy

Now that you’ve developed a better understanding of financial portfolio management, it’s time to do a quick check-in on your current investment portfolio using this simple three-step guide:

1. Evaluate Diversification

Check if your investments are well-diversified across various asset classes such as equities, fixed-income investments and real estate. Some more examples of different investments that you can consider in your portfolios include mutual funds, exchange-traded funds (EFTs) and index funds.

Ensure your investment portfolio is in line with your risk appetite, and financial goals. Consider rebalancing if you’re risk averse but heavily invested in volatile stocks.

Regularly review and compare the performance of your investments to market benchmarks and check if the returns are better than the inflation rate.

Remember, a regular portfolio review will solidify your investment strategy by adapting to changing market conditions and personal financial goals. This can significantly maximize your potential for growth and returns.

Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.