Mastering the art of investing: Build a portfolio that lasts

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Subscribe to enjoy similar stories. Investing wisely doesn’t require a crystal ball or insider secrets; it thrives on time-tested principles and disciplined execution. Whether you're building your portfolio for 2025 or decades beyond, the fundamentals remain consistent.

Let’s break down a straightforward guide to crafting a robust portfolio. Start with a plan: Crafting a strong portfolio begins with a solid investment plan. As the saying goes, “Failing to plan is planning to fail." Begin by defining your financial goals.

Are you saving for retirement, your child’s education, or a significant purchase? Your goals will shape your risk tolerance. For critical objectives like retirement, lower-risk investments may be ideal. For goals with greater flexibility, you can consider higher-risk options.

Read this | How you can calculate your early retirement fund Understanding the risk: All investments involve risk, but understanding it helps you make better decisions. Generally, higher rewards come with higher risks. If volatility makes you uneasy, fixed deposits or bonds offer steadier returns.

On the other hand, equities—whether through mutual funds or index funds—can provide higher long-term growth. The key is to balance your comfort level with your aspirations, ensuring your portfolio aligns with your needs and risk appetite. Diversify to mitigate risk: Diversification is crucial to reducing risk.