A well-balanced portfolio should be designed as per your risk profile. It should be balanced to hedge against unforeseen circumstances. To create a well-balanced portfolio, you should decide your asset allocation as per your risk profile. The well-balanced portfolio definition can vary from investor to investor.
There should be a wide variety of investments in a well-balanced portfolio. Smallcap stocks, government bonds, and foreign currency are examples of this. Maintaining the health of your assets is essential. Failure to comply could result in a reduction of the money you receive.
Portfolio management is all about picking the right set of assets to lose as little money as possible on your investments and make as much money as possible. But remember that this is not a one-time exercise. You need to manage your portfolio and update it from time to time.
