4 Keys to Successful Invesment Diversification | Endeavor Wealth Advisors

To achieve the lifestyle you desire, Financial Planning for Business Owners is essential. This specialized approach ensures that you are in complete charge of your life through financial independence. By consulting a financial adviser, you can tailor strategies in wealth management and receive investment advice. This empowers you not only in personal realms but also strengthens your business. Remember, effective Financial Planning for Business Owners is the key to living life on your own terms, without dependency on others. This is when financial planning plays an important role in an investor’s journey. In this article, we will understand the 4 investing steps that can help you on journey of financial independence.

Being conventional with debt

As debt funds and other fixed-income instruments are less prone to market volatility, they are relatively safer investment options than equity investments. Hence, it might be tempted to invest in these “safe”* investment options. Though fixed-income instruments are deemed as safe investment options, they come at a cost. Cost of losing an opportunity to earn significant returns. Hence, you must decide your equities and debt allocation basis your risk profile, investment horizon, and financial goals. If you are an investor in their early stages of investments, you might consider allocating a significant portion of your assets in equities and equity-linked securities. This is because equities have the potential to generate inflation-beating returns. In fact, history is a proof that equity investments tend to yield significant returns to investors when invested for a long tenure of seven years or more.


You must be well-adverse with the adage saying – ‘do not put all your eggs in one basket’. This holds true for investments as well. As an investor, you must ensure that you diversify your investment portfolio across varying securities, asset classes, sectors, and location. Diversifying your portfolio will help you to reduce the impact of risk arising from any one type of investment. It will also help you to reduce the exposure of any one type of asset class. Basis your investment portfolio, you must deduce the right asset allocation strategy for your investment portfolio.

Invest on a regular basis

SIPs or systematic investment plan can prove to be a boon to investors, especially new investors. Why? Well, there are several benefits of investing in mutual funds through the systematic and regular approach of SIP investment. As SIPs invest a pre-determined sum of money in desired mutual fund schemes at regular intervals for a pre-determined period irrespective of market conditions, SIP investments inculcate the habit of regular and disciplined investing among investors. Additionally, by investing in SIP mutual funds, an investor benefits from the concept of rupee cost averaging and power of compounding. Additionally, an individual does not need to time the markets when investing in mutual funds through SIP mode of investing.

Review your portfolio

Lastly, you must not forget to review your financial portfolio and investments. Regular review of your investment portfolio will help you to understand the performance of your investments against the underlying benchmark and other peer funds in the same category. What’s more, you might consider changing your asset allocation strategy if your fund has been consistently offering poor returns for a prolonged period. Happy investing!

*No investment is entirely safe. There is always some level of risk associated with all types of investments.