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How to optimise your investment portfolio? By Naveen Kukreja, Co-Founder & CEO, Paisabazaar

An efficient financial planning should always aim at generating optimum returns from an investment portfolio. However, making wrong investment choices or ignoring important investment fundamentals can create major gaps in your investment portfolio, which can adversely impact your portfolio returns over the long term.

Here I will suggest some tips for fixing the gaps in your investment portfolio for generating optimum returns: 

Invest in equities to achieve long term financial goals:

Many investors fail to appreciate the impact of inflation on their investment portfolios and financial goals. As inflation reduces the purchasing power of money, inflation rates exceeding the returns from the investments would land one with inadequate financial corpuses for achieving his future financial goals. Note that fixed deposits and other fixed income instruments barely beat the inflation rates while equities as an asset class beats inflation rates as well fixed income investments by a wide margin over the long term. Thus, investors should invest in equities and equity oriented mutual funds to achieve their long term financial goals. They should invest in fixed deposits or other fixed income instruments for achieving their short term financial goals as equities can be very volatile in the short term.

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