It is not about our favorite investment product. It is about how to create a performing investment portfolio?
You cannot have a winning cricket team with 11 identical players.
You understand that it is quite a job for the selectors to select a WORLD-BEATER national cricket team. And it would be tougher to select the BEST Team possible if they do not follow a process and select the team based on Favoritism. let us visualize what that ideal selection process simply might look like:
Step1: Check and analyze, the type of tournament (a Test, an ODI, or a T-20), the location of the tournament (India or Abroad), the field conditions at that location (suitable for fast bowlers, suitable for spin bowlers, or suitable for batsmen).
Step2: Decide and finalize on the appropriate combination of the number of batsmen, bowlers (pacers and spinners), and all-rounders based on the above.
Step3: Select the players WITHOUT BIAS to fill up the decided numbers based on their suitability, ability, and performance.
When this team plays a match do all the players perform equally towards a win? Sometimes the bowlers might fail to contain the opponent’s score within a limit, but the batsmen perform outstandingly to get a win for the team.
Now, based on the performance of this one match can we have a team comprising only batsmen for the next match? No, right? because we understand that not all players would perform well every time and that all the players in a team have a role to play. You cannot have a WORLD BEATING CRICKET TEAM without all 11 players.
Investment is not about your favorite product
Investment is not about your favorite product. It is about having a winning team i.e. about having a performing investment portfolio. And like individual players, all investment products such as bonds, real estate, equity, endowments, annuity products, etc. are important and serve a purpose in your portfolio based on conditions and goals. This is where the art and science of selecting the right products in your portfolio pays.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute professional advice. While full efforts have been made to ensure the accuracy of data and numbers, no responsibility is taken for any errors or omissions. Tax implications on insurance, investments and returns from related products may change due to updates in tax laws. Always consult with your financial advisor or insurance expert before making any investment or insurance decisions. The author is not responsible for any financial losses or damages incurred as a result of relying on the information in this blog.
