Declutter your investment portfolio this Diwali; follow these 5 steps

livemint.com:

investment portfolios is slowly eclipsing the emphasis on socializing and entertainment. After all, Diwali celebrations are synonymous with seeking blessings for wealth and prosperity. Instead of blindly accumulating investments based on rumours and a misguided understanding of personal finance, it would be highly beneficial to approach investments with the perspective of Diwali, which emphasizes the need for re-evaluation, tidying up, and decluttering your existing holdings to create room for what truly deserves a place in your portfolio.

The following simple steps will help you declutter both your home and portfolio in the long run. What are those things lying under your bed or table or in cupboards? Do you need them? If those things have been lying down there for so many years, chances are that you will not need them in the future too. How many investments make up your portfolio? This should encompass all your stock investments, mutual funds, fixed deposits, and any other investment vehicles.

If you’ve been investing for a few years, you’ve likely gathered a variety of investments. Take a close look at their returns to determine if they’ve contributed to your financial objectives. If they haven’t yielded the desired returns, it’s time to divest and declutter your already crowded portfolio.

You realize that you have extra money lying in your account that is losing value due to the effect of inflation. Cleaning up also implies making way for something new, which is why you must make space for new investments. If you are not sure of market-linked investment options, you may as well opt for high-yield traditional money-making opportunities like high-yield bank and post office deposits.