Diwali is considered the beginning of the New Year. We can closely associate the ‘cleaning process’ with Diwali, whether it is your home, old items, or broken electronics.
If you put a lot of effort into your household tasks, why not look at your financial activities? Your portfolio speaks about your wealth management journey intentions. Let’s clean your portfolio as well as do some dusting in your home.
Identify the things you need to arrange
When you are cleaning for Diwali, you start by looking at everything and arranging it properly.
Likewise, you should first start a summary of your entire portfolio in your financial journey. Analyze your whole wealth management process and analyze your financial instruments by thoroughly examining the performance of these mutual fund instruments. It will give you information about the overall performance of your portfolio and the tools you are investing in. In turn, according to your financial goals, you can use this information to allocate funds and prioritize investments.
Know where to change and where to remove
When cleaning, we first test whether a specific electronic product works, or does it need to be fixed quickly, or it’s just a piece of junk to clean.
Likewise, by analyzing your portfolio in detail, it is easy for you to study the tools that work for you. Depending on its performance, you can determine whether you want to continue investing in that instrument or whether you want to change the fund to that instrument. Through investing in other attractive investment instruments, you can use these depleted funds to invest in some other tools and rebalance your portfolio.
When you are thinking about buying a new item, your first instinct is to keep it for a long time.
Whenever you feel that you are investing in an instrument, go for it according to your long term goals. For example, when you look for a 3-year investment return in a mutual fund and compare it with 15 years of return, you can see a vast difference in the assets that you have over time. Therefore, it would be more valuable to create wealth with a long-term view in mind than short-term returns in similar resources.
Take a chance and make mistakes, how you grow. There is a little point here and sometimes you must learn from your mistakes. Turn these failures into a learning experience and find a way out of your troubled times. It will not only help you develop better strategies for wealth management but will also help you to build a rich portfolio.
The creation of wealth is a process of aging; it grows over time. Don’t worry about your mistakes – revisit them, clear them and learn from them again. Note, there is no progress if there is no conflict. Have a happy and safe Diwali and keep investing!
Note: I hope it is a good idea to correlate your Diwali cleanliness in portfolio cleaning.