FINANCIAL EDUCATION

Ready-made portfolios and who needs them?

It doesn’t matter how much one can make from his job or business. Because of inflation, the value of money depreciates over a period of time. To escape from inflation and to avoid money depreciation, you must find a way to beat inflation. That is where investing comes into the picture. Regardless of what a person does or how much he earns, everyone should allocate some part of their money for investing in stocks, bonds, gold or mutual funds. If you are one that does not have much experience in the stock market or does not want to spend much time doing analysis, there is no need to worry. We got you covered. In this article, we will talk about ready-made portfolios.

 

What are Ready-made portfolios?

A Ready-made portfolio is a combination of mixed investments that are grouped into one fund. Each of these funds is created by the AMC and they spend a lot of their time in building them. These portfolios invest in various type of assets across different sectors. By doing so, they build ready-made portfolios in a well-diversified manner. Because of diversification, ready-made portfolios are well risk balanced. The main goal of these portfolios is good returns with fewer chances of going on the negative side.

 

Who needs a ready-made portfolio?

  • Many people want to invest in the markets but the major issue is they do not know where to start. Knowing where to start is the hardest part. This major can be solved by ready-made portfolios. These portfolios are best for this kind of people. If you are the one who is in the beginner stage then you can opt for a ready-made portfolio.
  • These are also best for the ones who do cannot allot much of their time for stock analysis and for portfolio diversification.
  • If you are the one who wants a mixed diversified portfolio then you should prefer investing in these portfolios.

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