The different types of investment portfolios
The different types of investment portfolios
Namaskar dosto and welcome back to another exciting investing special podcast.
Doston aaj ka podcast topic bahut important hai kyunki yeh samajhne ke baad aapko apne investment planning mein kam takleef hogi - mere taraf se, I will do my best to help you understand investment portfolios in a fun and interesting manner.
Agar aap humare podcast first time sun rahe ho toh this is where we tackle important stock market concepts and topics. We make use of real life situations and simple examples so that the topic becomes much more relatable and easily digestible.
To chaliye dekhte hai:
What is an investment portfolio?
Dost investment portfolio ko aap fridge ya cupboard ke saath compare kar sakte ho. Fridge mein there are different categories of food items -fresh fruits and vegetables, dairy, sauces, cooked items,, beverages...
Just like a fridge or a cupboard, an investment portfolio contains different categories of investments - iske correct term hai asset classes jaise ki stocks, mutual funds, fixed income instruments, real estate, gold and so on. Not all portfolios will necessarily have saare ke saare categories.
Why have a whole portfolio - why not just pick ‘the best’?
The definition of best is where the problems begin. Har insaan ke liye best ka alag definition rehta hai. Mere liye capital growth important hai toh mai thora bahut risk lene ke liye tayaar hu; mere friend ke paas bahut ancestral wealth hai - inke liye sirf capital safety important hai… Inko growth ki zaroorat nahi hai toh woh risk lene ke liye bilkul tayaar nahi hai. Inke wife ko savings se koi matlab nahi hai - she spends up her entire income… Saal mein ek baar woh tax saving ke liye hi invest kar deti hai. Mere bhai bhi vaisa hi hai lekin he likes to take an expensive holiday once a year. Woh 11 months mutual funds SIP karta hai aur 12th month mein poora paisa uda deta hai.
Different asset classes might also offer better benefits in different economic scenarios and as a result, thoda diversification se, investors apna risk kam rak sakta hai.
Apna risk minimize karne ke liye aur apne alag alag financial goals ke paas pahunchne ke liye, investors portfolio bana dete hai aur apne investments ko diversify kar dete hai.
Types of investment portfolios
There are various ways of classifying investment portfolios, lekin aaj ke discussion ke liye we are going to divide them into 5 types.
Aggressive growth portfolio
Speculative growth portfolio
Defensive growth portfolio
Kai log investment portfolios ko 3 categories mein divide karte hai that is growth portfolio, income portfolio aur value portfolio. Agar aap woh hisaab se divide karna chahoge toh humare list ke first 2 growth portfolio category mein aa jayengein aur humare no 3 that is defensive portfolio might come under value portfolio in the 3-part classification. Dono classifications mein income portfolio is known by the same name, or humare 5 part classification mein there is also room for a hybrid portfolio.
Toh let’s begin with
Aggressive growth portfolio - Jo investors aggressive portfolio choose karte hai unka goal hai quick capital growth. Yeh investors risk lene ke liye bilkul tayaar rehte hai. They are looking for high volatility, or a higher amount of stock price fluctuation. In ko high beta stocks pasand hai - beta is the measure of a stock’s volatility. Agar kisi stock ka volatility 1 hai that means it’s volatility is equal to that of the overall market. Agar koi bhi stock ka volatility 1.5 ya 2 hai that means it’s volatility is 1.5x or 2x that of the market. Aggressive portfolio investors ko stocks with a beta 1.5 ya 2 ke liye preference rehta hai. That means ki market jab up hai they could get 2x returns lekin jab market down hai toh 2x losses bhi ho sakta hai.
Speculative growth portfolio - yeh toh aggressive investors se bhi do kadam aage hai. These investors take an even higher amount of risk aur yeh risk speculation basis pe hai. Aggressive investors kam se kam historical pricing ke basis pe stocks choose karte hai, lekin you might see the speculative growth investor go for IPOs or new and upcoming technology or service or product. In ka iradha hai very high rewards aur very high risk. This type of portfolio is best suited for an experienced investor with deep pockets nahi toh with an amazingly high income, taki he can take such high risks. For example, investors currently placing odds on the space race or alternative energy or electric cars might come in this category.
Defensive growth portfolio - in investors ko bhi growth se matlab hai lekin they might be more careful with their choices. The name defensive comes probably from the fact that they seem to be prepared for the worst. Aise investors woh stocks choose karte hai jo recession proof (aur pandemic proof) hai. In ke stocks rehta hai food products and essential items and regular medications (not vaccines… not anything gimmicky or trendy).
You could perhaps put value investors who make careful and deliberated choices in this category. Value investors only buy a stock when the stock price is low as compared to the company’s profitability. Inko discount price aur company valuation se matlab hota hai. Defensive investors ka focus hai stable aur long term growth.
Income portfolio - aise investors ko regular income pe focus hai. Ve dividend stocks choose kar lenge nahi toh mutual funds that offer a monthly pay out. Insurance products bhi rehte hai, in such an investor’s portfolio. These investors may be high risk or low risk prone but are typically low risk when they are seniors looking for income as pension. Jab salaried investors' income portfolio choose karte hai, they can be high risk kyunki they are either preparing for the future or supplementing existing income. Inka 100% dependence nahi hai on the performance of the investments, toh risk ke liye thoda jagah hai.
Hybrid portfolio - zyada se zyaada investors ko some capital safe rakhna pasand hota hain, part of the capital pe long term growth chahiye; part of the capital mein aggressive growth chahiye… this is the largest category of investors. In ke portfolio mein bahut flexibility hota hai aur in ke investments variety of financial goals ke peeche based hai. Aapko dusre four categories ke investments hybrid portfolio mein dekhne ko milega.
Well friends, yeh raha investment portfolio pe primer. Aapke liye kaunsa portfolio sahi rahega? Have you figured it out? Always consider your risk appetite and investment horizon while picking stocks
Jaane se pehle, ek baat yaad rakhiye ga this podcast has been made for educational purposes only and the investor must do his own research as well.
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