How To Diversify My Finance Portfolio In India?

How To Diversify My Finance Portfolio In India?

Portfolio diversification is an investment strategy that collaborate different investments in a single portfolio. Since portfolio diversification is an art, therefore it aims at maximisation of return and decrement in risks.

Various factors that effect the portfolio diversification are:

    • Purpose of diversification
    • Age of the investor
    • Ability to take and bear risk


  • Time period and future goals


Various methods of portfolio diversification in India:

 For an Indian Resident, investment portfolio can be diversified in lieu of following schemes and opportunities available to the investor:

  1. Large Cap  schemes (hereinafter called just as Funds)
  2. Mid Cap Funds
  3. Small Cap Funds
  4. International Funds
  5. Mutual funds
  6. Long Term Govt Securities Funds
  7. Gold Funds
  8. A diversified set of stocks across market caps that have potential to grow well in the long term in a sustainable manner (a professional may be consulted to identify such potential long term multibaggers)
  9. A positional trading portfolio of stocks with short term appreciation potential
  10. An intraday equity trading investment using a highly sound and reliable strategy and platform (it’s better not to try this yourself but consult an expert)
  11. Direct equity
  12. Equity mutual funds
  13. Debt mutual funds
  14. National Pension System (NPS)
  15. Public Provident Fund (PPF)
  16. Bank fixed deposit (FD)
  17. Senior Citizens’ Saving Scheme (SCSS)
  18. RBI Taxable Bonds.
  19. SIP mutual funds
  20. Institutional investment

Though there are number of options available with the investor, yet he should not be greedy, instead wiser decisions should be made after consulting the market experts.

Michael Hunt