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Why Do Money Earn More Money For You?

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Why manage Wealth? It’s your hard earned money, why not manage it? Why shouldn’t your money earn more money for you? Well these questions would certainly seem obvious to you, but are these not what are the questions that matter a lot as you grow old? Of course this is a materialistic world where money has gained a whole lot of value and for one’s sustenance and better livelihood one desires for more and more wealth. For the purpose of generating huge wealth we need to manage our money in an efficient way and that is where Portfolio Management comes into play. Portfolio could be termed as a mixture of various outlays of investment done by you, or in short “Asset Allocation”. What is an ideal Portfolio? This is a very common question asked …show more content…

growing your wealth, managing your wealth and protecting your wealth. Growing your wealth is a necessary step for affecting the other two aspects, for which it is required to follow a strict and disciplined investment approach on the basis of your risk taking ability. First of all you need to figure out what your needs are in accordance with time. This will help you invest in a better way to fulfil these needs. Managing your wealth is as important as growing your wealth, otherwise growth chart can take a reverse movement at any time. Thus, managing your wealth by the way of evaluating your portfolio on a periodical basis is very important, along with studying about the sectors in which you have made investment by the way of performance updates, report analysis. Earning is not just for the sake of today, but also for tomorrow, for you and your family. This is where the third aspect of Portfolio Management comes into play-protecting your wealth. Growing and managing would give you enough of wealth but these are like waves, coming and going back, or say ups and downs. Thus, to gain maximum out of it we need to protect it by the means of risk management, diversification, hedging or insurance. All three, growing, managing and protecting your wealth, when integrated and made a portfolio out of the same, will surely be a successful one, tapping out huge earnings potential. As discussed Portfolio Management is “Asset Allocation” and when this allocation is done

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