An
investment portfolio is a kind of list of the financial assets like various types of account, certificates of deposit, individual retirement accounts, real estate, stocks, bonds, jewelry, different types of savings and many more. An investment portfolio not only ensures financial security of the investors in the post retirement period, but it also provides the means, which can help in leading a tension-free and debt-free life.
Before creating an investment portfolio, an investor should be careful about making a cash reserve. This is very important for those who are about to start investment. This cash reserve proves to be of great use at the time of emergencies. According to the experts, the cash reserves must be enough to meet the living expenses for at least six months and this reserve should be in liquid form. At the same time, the investors need to take proper care of their insurance policies.
One can choose the investment portfolio according to his or her own choice and financial capacity. Following are some of the preferred investment options in which one may put their money:
- Stocks: It is probably the most popular of all investment options. The growth rate in this market ranges between 10-12%. But in the recent years, the stock market has provided nearly 20% growth to the investors. This market has always been a risky option for the investors but the long term investors have done well in this market.
- Mutual Funds: This is the safest option for the beginners in the field of investment. The mutual funds use to collect money from different investors and then the fund manager invests the money in different mediums like shares, bonds and many more. The mutual funds facilitate the process of investment diversification, which is necessary for providing security as well as good growth rate to the investment.
- Bonds: This is also a form of investment where the investors provide funds to the companies or to the governments and get back the amount with a certain amount of interest.
Apart from these, there are some investors who invest in gold and money market. Real estate investment is also a popular form of investment and a lot of investors prefer to include this option in their investment portfolio.