Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

How to Make Your Financial Portfolio?

Here are a couple of tips and techniques to build your financial portfolio. Portfolio as per your risk appetite and the amount you can save regularly.

  • Jul 26, 2022

A well-diversified financial portfolio is crucial to meeting the success metrics and achieving your financial goals. As an individual investor, you need to determine an appropriate asset allocation that is profitable and suits your investment goals. Investors can build portfolios aligned with different investment strategies by following a systematic approach. Making an investment portfolio can seem intimidating for beginners, but the earlier you begin investing, the better will be the outcome.

Risk assessment is crucial to minimize the risk and gain profitable returns even if you’re investing in a market-linked insurance plan. Then, investors can invest according to their risk-taking appetite and financial goals.

Let’s dive deep to understand how to make your portfolio!

How to Create Your Financial Portfolio?

Building a financial portfolio will help you grow your wealth but also help you cultivate a discipline of saving for the rainy days. Such a disciplined savings and investment approach can help you build an emergency fund, save for that bike or plan your home EMIs way before time.

Determining Appropriate Asset Allocation

The first and foremost rule of building a portfolio is to allocate the investment between different assets like stocks, bonds, government securities, insurance, cash, etc. You must consider three critical aspects of asset allocation, which include:

  • Financial Goal
  • Investment Horizon
  • Risk Tolerance

Clarifying your current situation, future needs, and risk tolerance will help you determine how your investment should be allocated. However, the possibility of greater return comes with a greater risk of losses. On the other hand, you should not forget about your family’s well-being too. So hence, it is important that you also subscribe for term insurance plans basis your family requirement.

Achieve the Portfolio

Once you have determined the asset allocation, you will have to divide your capital between the different assets. There are numerous ways you can go about choosing the investments and securities to meet your asset allocation strategy, which include:

  • Stock Picking
  • - You must choose the stock that satisfies your financial needs and the level of risk. It is better to research, choose a few good stocks and then see if these are a good pick. Do not risk such investments based on rumors and “tips” on WhatsApp or other unofficial channels.

  • Bond Picking
  • - While selecting a bond, you must check several factors like coupon, maturity, bond type etc. It is good to invest in government bonds as they tend to offer good returns and lesser risks. But, again, ensure that you know lock-in periods, if any, and other conditions.

  • Mutual Funds
  • -These are available for a wide range of asset classes and allow the policyholders to hold stock and bonds that are professionally researched and selected. At the same time, remember that these are long-term investments and should not be touched for at least 10-15 years. Starting with Systematic Investment Plan (SIPs) can be a good route for beginners.

  • Exchange-Traded Funds (ETFs)

Are the best alternative in case you do not want to invest in mutual funds. It covers many asset classes and can help round out your portfolio.

Reassessing Portfolio Weightings

Once you have established the portfolio, you need to analyze and rebalance it to ensure that price movement does not affect the weight. To assess asset allocation, you need to categorize investments and determine their value. The other factors likely to change over time include current financial situations, future needs and risk tolerance. Therefore, you need to adjust your portfolio with these changes.

Rebalancing Strategically

Once you have determined which securities to reduce and how much, you can buy the underweight securities and sell the overweight ones. Again, analyst opinions and research will help you make an informed decision.

The financial portfolio is a more prominent subject, and there is a lot of research goes into building a good and profitable one. The steps we discussed simply towards a common idea called diversification. When you diversify your finances between different assets, you ensure you never lose your money.

You might earn well from your bonds during bad days in the stock market. This way, you know that your holdings are consistently making you something which will keep you going. Apart from this, your patience will also play a significant role in earning good returns. For example, mutual fund investments are long-term. If you give in to the emotions, you will make a loss and then lose your money.

We hope now you have an in-depth idea about how to make your financial portfolio. Then, it’s time to start investing in your future! First, however, remember that investing is risky by nature, and there’s no guarantee that your investments will be profitable.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Plan Savings from Salary?

Why are ULIPs One of the Best Tax Saving Instruments?

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

How To Track ULIP Performance?

Difference Between Guaranteed Savings Plan and ULIP

How Much Wealth Can You Create from ULIP in 10 years?

What Is Financial Planning?

Successful Financial Planning for Urban Women

Here's Why it's a Good Time to Explore ULIPs as an Investment

Why Should I Invest in ULIP?

Long Term Savings Plan - Best Savings Investment Plans in India

Customising investments to manage your wealth

The lesser-known facts about ULIP policy that customers should be aware of?

ULIPs Investment – A Boon or Bane?

How Does an Endowment Plan Work?

Best One-Time Investment Plans in India

What is ULIP Plan, and How Does it Work?

How to Choose the Best ULIP Plans to Invest in 2022?

How Can ELSS Funds Help You Save Tax & Create Wealth?

What is a Child Money Back Plan, and How Does it Work?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

लॉयल्टी एडिशन क्या हैं, और वह यूलिप में कैसे काम करते हैं?

Building wealth through regular investing

What is a Savings Plan and What are is Benefits?

What are the Best Investment Options for Young Adults?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

What is Equity Mutual Funds: Meaning, Types & Benefits

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

What is Money Management? Definition & Example

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Savings Plan for Grandchildren

8 Charges in ULIP That You Must Know

Top 5 Investment Options in 2022 for Healthy Returns

What is NAV in ULIP, and How is it calculated?

What are the Best Investment Options for Students in India?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Are Gains from ULIP Sale Taxable?

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

Early Investing and the Power of Compounding

What are Mutual Funds?

Best Investment Plans for Children - Secure Your Child's Future

8 Important Tips to Maximize Gains with ULIP Investments

What's Better for Your Child's Education? Child Plans or Mutual Funds?

What are Some of the Safest Investment Options in India?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

ULIP vs FD - Which is Better and Why?

Why Should You Build an Emergency Fund?

Why Should Parents Invest in Endowment Plan?

How to Cancel ULIP Policy?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

What is the Time Value of Money (TVM)?

Rate of Interest on Different Investment Plans in India

Investment Options for NRIs in India

Why Are ULIPs Called Flexible Investments?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

What is the Importance of Saving Money?

What is ULIP and Its Benefits?

What are the Best Short-Term Investment Plans with High Returns?

6 Important Tips to Maximize Your Gains with ULIP Investments

What are Tax-Deferred Savings Plans?

Are Money Back Policies Helpful? A Complete Guide

How to Manage Inheritance Money?

Top 10 Investment Plans Available in India

What are loyalty additions, and how do they work in a ULIP?

Importance of Portfolio Management

Investments Options to Buy a house in India

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Best Investment Options to Cover Your Child's Education

Is This The Right Time To Invest In ULIP? Why or Why Not?

Planning for Your Child's Higher Education? Explore These Investment Options

How to Use Recurring Investment Strategies to Build Wealth?

ULIP as an Investment for Your Child

Factors Affecting Stock Markets

What is Compound Interest, And How Do I Calculate it?

Creating a second source of income with life insurance

What is Direct Investment and its Types?

Why Should You Invest in Term Insurance And ULIP?

ULIP NAV Meaning & How is the Return Calculated in ULIP

4 Benefits of ULIP Fund-Switching Feature

How to Manage Your Portfolio Like a Professional?

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

How To Invest Money In ULIP?

Can ULIP Help in Achieving Short-Term Financial Goals?

Best Investment Options in India in 2022

Short Term and Long Term ULIP Plans for Wealth Creation

Everything You Must Know About ULIP Riders

ULIPs: Suitable for all

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

ULIP Plan as a Gift

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Safe Investment Options with High Returns for FY 2018-19

How to Plan your Investment to Achieve Periodic Financial Goals?

What are Index Funds and How Do They Work

How to Increase Net Worth Along with Family Protection

Corporate Bonds: Meaning, Types & Benefits

Endowment Plan vs Fixed Deposit?

Which are the Best ULIP Plans in India for Children?

How to Start Saving Money in 10 Simple Ways?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

ULIP Benefits You Can Avail from Early Investing

The Importance of Starting Early: Securing Your Child's Future with a Child Education Plan

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Receiving regular payouts at various stages of life

A Step-by-Step Guide: How To Make An Investment Plan?

How to Fulfil Your Financial Goals in the Next 10 Years?

Got a Salary Hike? Here’s How to Plan your investment further

Top 10 Investment Strategies to Create Wealth

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Benefits of ULIP as a Child Insurance Plan

Why ULIP is Better Investment for Long-Term Wealth Creation?

Top 5 Principles That Need to be Followed for Wealth Creation

Which is a Better Investment - Mutual Funds Or ULIP?

How to Plan Your Child's Education - A Step-by-Step Guide

यूलिप के फायदे (Benefits of ULIP in Hindi)

Difference Between ULIP and Endowment Plan?

How Do One-Time Investment Plans Work?

Different Types of Endowment Plans

Are Investment Returns Guaranteed in a ULIP?

What is SIP Calculator, And How Does it Work?

What are Financial Assets & their types?

What is a Credit Score and How Can Insurance Help You Improve it?

What is ULIP Renewal?

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

वित्तीय संपत्तियां और उनके प्रकार

How to Calculate Your ULIP Returns?

Four Financial Lessons from The Vedas on Living Life to The Fullest

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Why Do You Need A ULIP Plan - All You Need To Know

Things to Know Before Buying an Endowment Plan

Planning Financial Goals and Objectives of Financial Planning

What are the Advantages and Disadvantages of ULIP?

Difference Between Passive and Active Investing

Learn About Safe Investments with High Returns in India

Asset Allocations in ULIP - Know the Top Benefits

What are the Best Investment Options For Females?

How To Diversify Portfolio In 2023?

Learn About Safe Investments with High Returns in India

Can ULIP Policy be Transferred?

Do You Know the Difference Between Savings and Investment?

Is the ULIP Policy Surrender Value Taxable?

यूलिप के फायदे और नुकसान क्या हैं?