Gaurav Mashruwala talks portfolio diversification with US Freedom Capital

Financial Planning Expert, Gaurav Mashruwala, talked to a web-audience on the do's and don'ts of portfolio diversification on 7th March. The host of the webinar was a Mumbai based investment house US Freedom Capital.

During the webinar, Mashruwala indicated that at the most basic level, diversification means investing in a manner where not all assets fluctuate in the same direction at the same time. Aligning your investments to your financial goals, he said, is especially important. On that note, he outlined the most critical aspects of a well-diversified portfolio. This includes articulating your financial goals, analyzing your cash flows, and knowing the items that you're invested across. In addition to these aspects, he laid great emphasis on timelines: "The sooner you assess and thoughtfully construct your portfolio, the better."

Contrary to popular belief, he added, the focus of diversification is not purely about generating the highest returns. In fact, Mashruwala is of the view that it is highly beneficial from a wealth preservation perspective. He has encouraged his own clients to consider diversification in foreign currencies for the very reason that it helps reduce overall risk in their portfolio.

In fact, Mashruwala commented that a majority of HNI Indians have their portfolio concentrated in INR. But with regulatory roadblocks becoming less of an issue, and fund options being more accessible, it is worthy to consider investing outside of India. One must remember, he said, that geopolitical activity can influence a currency. If investments are saturated in purely one currency alone, then it is important to decide what you are doing to protect those assets. Making investments across the globe could be a smart solution, which has become less complicated over the years. This story is provided by NewsVoir.