How The Financial Advisor Can Help in Diversifying Your Portfolio?

 

Financial planning can be tricky, and unless you have what it takes to get the financial planning  ball rolling, it might be a mess. Now one of the biggest mistakes that you can make is to not diversify your portfolio enough and investing in only in the domestic market and this would be a mistake that you should avoid making. When you put everything in one basket you run the risk of not having enough profit and also you put everything in a bigger risk because of the fact that if all your investments are taking place in the domestic market, then any kind of market volatility could affect your investments.

The Financial Planning Needs Diversity:

Since the financial advisor has the knowledge of the advanced tools like the mutual fund distributor apps, he can suggest the right product mix for you that would introduce the element of diversity, when you only limit yourself to the domestic investment scene you not only put the investment at a bigger risk. Also, when you limit yourself you miss out on the opportunities that are available elsewhere. The advisor can truly enhance the potential of your portfolio in a big way. Some key factors to be noted here are-
  • The risk would be everywhere, so, if you are planning on investing in the global market you would be exposing yourself to risk there as well, but since you would be having a mix of both domestic and global products, the risk would be much lesser. It is up to the advisor to identify those areas that can be lucrative.
  • The job of the advisor would be to identify areas where there would less volatility and also identify opportunities that the clients might not have access to in the domestic market. Having accessibility to IFA advisory support services can help them find the right product mix.

A diverse portfolio can be appealing to any investor and most importantly with With the help of a financial advisor, you can make the right decisions in this regard.

Location: India

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