Conservative Investment Strategies and Diversify Your Portfolio

Conservative Investment Strategies and Diversify Your Portfolio


Let the bulls run and let the bears hibernate! I am an average, general, retail investor, who merely wishes to earn a little more via my hard-earned money. You see, I’ve put my blood and sweat into it, nothing is dearer to me that my principal!

But, does that mean, I am only meant for fixed income bonds, or measly fixed deposits? No, it doesn’t! I am not adverse to a little more risk and high income. Thus, my advice would be to be – CONSERVATIVELY MODERN! Confused? Well, it isn’t that bad, let me explain in simple bullets:

•    Ascertain clearly, how much money you have for investment purpose.

•    Divide that amount into for equal parts – fixed, moderate, high and working.

•    Working cap goes into fixed deposits or recurring deposits. You should see this money as your contingent money. Also, please keep adding to this base every time you invest. Never do the mistake of forgetting this fund.

•    High risk instruments will give you better returns, undoubtedly, but sure enough, the risk is high. I am counting, equity, commodity, futures and options. Investment in futures, options and commodities are basically for heavy investors. So, choose accordingly. A little cautious investment would be required. Invest, when the markets are low. Invest only in blue-chips and heavy-weights and forget about your investment for some time. Let the money lay and multiply itself.

•    Instruments of moderate risks will provide moderate returns. These typically include ULIPs, Mutual Funds etc. Given a sufficient time, these shall surely provide you decent returns. A typical period here is between 5-8 years.

•    A portion of your funds must also go traditional instruments, paying you regular income. I would advice bonds and debentures in this category. Your money remains much safe here while you get a good interest too, which will grow your income further.

There you are! You have your money safe, you’ve taken risks, you’ve diversified your portfolio and so, you are almost sure not to lose money! It’s simple and effective way to manage your money. Try it, to believe it!


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