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Showing posts with the label Financial year

Essential things to do in the new financial year

1) Re-balance the Portfolio The most important step is re-balancing of the portfolio. You may have started the year with a 60% allocation to equities, 30% to debt and 10% to gold. But, equities shot up 30-40% in 2014-15, while debt went up by 9% and gold fell by 5%. So your portfolio is now 65% in equities, 26% in debt and 9.5% in gold. To return to the allocation preferred by you, sell some of your equity investments and invest the proceeds in debt and gold. It is a fact that investors who periodically rebalance their portfolios get the best returns 2) Review Progress of Goals Along with rebalancing, you also need to review your financial goals. If some investments have not done as well as estimated, there would be a shortfall in the target amount set for that goal. You need to make additional investments to cover that gap. In some cases, the target itself may have moved up. For instance, if the surge in the dollar has pushed up the cost of your child's foreign education, yo