Building a portfolio involves several steps:
1. Define your investment goals: Determine your risk tolerance, time horizon, and financial objectives.
2. Choose asset classes: Select from stocks, bonds, ETFs, mutual funds, or other investment vehicles.
3. Diversify: Spread investments across asset classes, sectors, and geographic regions.
4. Select individual investments: Choose specific stocks, bonds, or funds based on research and analysis.
5. Set an asset allocation: Divide investments among chosen assets, rebalancing periodically.
6. Monitor and adjust: Regularly review and adjust your portfolio as needed.
Additionally, consider:
- Rupee-cost averaging : Invest a fixed amount regularly, regardless of market conditions.
- Long-term approach: Resist short-term market fluctuations.
- Tax efficiency: Consider tax implications when selecting investments.
- Rebalancing: Periodically review and adjust your portfolio to maintain your target asset allocation.
Qualitative Factors
1. Efficiency of Operations
2. Competitiveness
3. Business Plans
4. Work Ethics of Management
Quantitative Factors
1. Revenues
2. Costs
3. Profitability
4. Risks to financials
