How to Make Your Financial Portfolio?

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

How to Make Your Financial Portfolio?

How to Make Your Financial Portfolio?
  • 26th Jul 2022 |
  • 2,674

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.

Kotak e-Invest

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


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

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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Manage Your Portfolio Like a Professional?

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

Do You Know the Difference Between Savings and Investment?

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

Top 5 Principles That Need to be Followed for Wealth Creation

Difference Between Passive and Active Investing

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Top 6 Investment Plans Available in India

ULIP Benefits You Can Avail from Early Investing

Planning Financial Goals and Objectives of Financial Planning

Top 10 Investment Strategies to Create Wealth

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

Who Should Invest in Savings Plan?

Endowment Plan vs Fixed Deposit?

Customising investments to manage your wealth

Learn About Safe Investments with High Returns in India

Difference Between Guaranteed Savings Plan and ULIP

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

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

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

What is ULIP Renewal?

Why Should You Invest in Term Insurance And ULIP?

Basics of Guaranteed Savings Plan

Why Should Parents Invest in Endowment Plan?

Top 5 Investment Options in 2022 for Healthy Returns

Early Investing and the Power of Compounding

What is a Savings Plan and What are is Benefits?

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

What is the Importance of Saving Money?

ULIP Plan as a Gift

Asset Allocations in ULIP - Know the Top Benefits

Are Gains from ULIP Sale Taxable?

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

How To Track ULIP Performance?

Complete Savings Plan for Low Income Earners

What are the Best Investment Options for Students in India?

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

Savings Plan for Grandchildren

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

How Do One-Time Investment Plans Work?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

ULIP vs FD - Which is Better and Why?

Investments Options to Buy a house in India

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

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

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

Successful Financial Planning for Urban Women

How to Plan your Investment to Achieve Periodic Financial Goals?

Importance of Portfolio Management

How Does an Endowment Plan Work?

What are Some of the Safest Investment Options in India?

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

Long Term Savings Plan - Best Savings Investment Plans in India

Learn About Safe Investments with High Returns in India

Short Term and Long Term ULIP Plans for Wealth Creation

3 Tips to Buy Guaranteed Savings Plan

What are Tax-Deferred Savings Plans?

4 Important Tips to Maximize Gains with ULIP Investments

Safe Investment Options with High Returns for FY 2018-19

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

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

Which is a Better Investment - Mutual Funds Or ULIP?

Different Types of Endowment Plans

ULIP as an Investment for Your Child

How to Cancel ULIP Policy?

Best One-Time Investment Plans in India

Best Investment Options to Cover Your Child's Education

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

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

Benefits of ULIP as a Child Insurance Plan

How to Manage Inheritance Money?

Are Money Back Policies Helpful? A Complete Guide

What are Deferred Savings Plans?

Investment Options for NRIs in India

4 Benefits of ULIP Fund-Switching Feature

What are the Best Investment Options for Young Adults?

How to Increase Net Worth Along with Family Protection

Building wealth through regular investing

Receiving regular payouts at various stages of life

How To Diversify Portfolio In 2022?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

What are the Best Investment Options For Females?

How to Start Saving Money in 10 Simple Ways?

Creating a second source of income with life insurance

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

How to Plan Savings from Salary?

Best Investment Options in India in 2022

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Can ULIP Help in Achieving Short-Term Financial Goals?

What is better - Guaranteed Savings Plan or Fixed Deposit?

Things to Know Before Buying an Endowment Plan