A Balanced Investment Portfolio for a Balanced Life

Balanced Portfolio

Are you young and restless or have you passed that phase of life and have become like mature wine? Whatever be your age, it is a good time a start and creating wealth for yourself with the right kind of investments.

Like one would include a variety of fruits, vegetables, legumes and carbohydrate sources in one’s diet, one should strive to create a balanced  investment portfolio as well.

Balanced Portfolio for the Young and Restless

If you are starting young and have many productive years ahead, you could go in for high-risk high return sort of investments like equity shares or equity-oriented mutual funds. Go in for a Dividend reinvest option in the mutual fund and keep checking on how much you gained every year to keep yourself motivated for more.

Instead of investing only in one equity-oriented mutual fund, go in for three to four of the best performing ones who have proved their credibility over the medium to long run. Personally speaking, I like to avoid checking the performance of a mutual fund over the short run since that doesn’t inspire much confidence for the long run.

Balance it out

Given the uncertainty of the stock markets, it is wise to create and maintain a balanced portfolio of investments for yourself in the long run. As the years pass by, start going in for balanced mutual funds that have a part of their investments in debt funds and another part in equity to give you a good balance between security and growth. Again, invest your money in good quality and varied funds rather than placing a bet on any one or two.

After you feel satisfied with this component of your portfolio, check out the good old Post office schemes besides other government instruments like National Savings Schemes, Public Provident Fund and the National Pension Scheme(NPS). Given the uncertainty of economic dynamics in an individual’s as well the nation’s life, it is good to attach value to security however boring the rate of growth may seem at first.

Keep Investment and Insurance Separate

Investments are great but don’t forget to add a high-value Term Insurance policy and a Health Insurance policy to make sure that life’s downs don’t pull your investments down as well. Insurance provides sturdiness to your investment portfolio so go in for them before you do any sort of investing at all.

The Compounding Advantage

Mahesh completed his accounting education when he was all of 26. Young, motivated and well-versed with financial wisdom, he started investing in three different instruments every month through regular but small amounts. One of these was an equity-oriented mutual fund, another a balanced mutual fund and the third a post office scheme.

As the years passed by, he maintained his disciplined approach to investing and did not touch these three investments no matter what was the requirement. Instead, he increased the amount of his contributions as his income rose. With the magic of compounding, his three investments gave him enough of a corpus to purchase a house for himself when he retired.


Compounding interest works wonders over the long run so start investing early even if you do so in small amounts to gain advantage. Earning and spending 100% of your income shows a lack of financial wisdom so never fall into that habit. Invest smartly using a balanced portfolio and create wealth easily.

First, identify your Investment objective to strike the right balance in your investment portfolio be it for your children’s education or for your smooth and safe retirement life.


About the Author

Supradeep Mukherjee is an author, trainer and broadcaster. Educated at Hindu College and the Delhi School of Economics, he has consulted with a number of corporate organisations, radio stations and academic institutions. His areas of interest include Personal Development, Parenting, Relationships and Lessons in Living from Mythology.

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