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How to Create an Investment Portfolio

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How to Create an Investment Portfolio

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It is critical to have the appropriate mix of assets and securities in your investment portfolio, as this will determine your overall returns and risk exposure. Set your financial goals: Financial goals would have to be set taking into account several factors, including your present income, an estimate of your future income, the number of years left for your retirement, your financial responsibilities (such as childs education or aging parents) and the prospects of the economy. Asset allocation: Any portfolio must include a mix of investments. This is because each financial instrument entails a different combination of risks and rewards. The various financial instruments can be broadly classified into four financial investment vehicles.

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