How to Manage Multiple Portfolios in a Share Market Trading App?

Introduction

Portfolio management is crucial to ensuring that your investments align with your financial goals. It also helps you track the performance of the stocks and allows you to rebalance your portfolio.

It is wise to invest in various investment instruments and having multiple portfolios; however, when it comes managing them all, it may seem like a challenge. To break it down for you and the process simpler, here is a blog explaining ways to manage multiple portfolios in a share market trading app.

Basics of Portfolio Diversification

One of the most important strategies for successful portfolio management is diversification. Diversification is an investment strategy in which you distribute your capital across stocks of companies in different sectors.

By utilising this strategy, you can minimise risk and increase your chances of gaining more stable and consistent profits even in adverse market conditions. The main principle behind this strategy is to understand that each stock has a different risk profile and performs differently in different market conditions.

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Here are some of the key benefits of diversification in portfolio management:

• Stable returns
• Risk reduction
• Protection from market volatility
• Customisation
• Better long-term investment opportunities

Tools for Managing Portfolios

While you invest through a share market trading app, the following are some features and tools that you can utilise for managing your portfolios:

• Performance Analysis Tools

Make use of tools that help you track and analyse the performance of the stocks in your portfolio. This will also help you determine the effectiveness of your portfolio and predict its future market performance based on statistical analysis.

• Discretionary and Non-Discretionary Services

Many apps offer both discretionary and non-discretionary services. In discretionary services portfolio managers make investment decisions based on your existing portfolio, investment goals and their market expertise. Whereas, non-discretionary allows you and the portfolio manager to make decisions. 

• Customisation

This is one of the most important tools for portfolio management as it allows you to include stocks that best suit your needs and tailor strategies to your needs, goals and risk appetite.

• Risk Assessment

This tool is crucial while managing your portfolio. It enables you to invest in stocks that align with your risk appetite and financial goals. It also helps you avoid going overboard with a particular asset class, sector, stock, etc., or making decisions based on emotions.

• Fact Sheet or Statements

Your stock market trading app provides you with factsheets or statements and gives you access to important real-time information about your holdings. This, in turn, helps you track the performance of the stocks and transactions.

Tips and Strategies

For successful multiple portfolio management, follow these simple tips and strategies:

• Establish an investment plan by considering your financial goals and risk appetite.
• Organise your portfolio by categorising it based on risks and tenure.
• Diversify your portfolio by trading in stocks of different companies in various sectors.
• Monitor your portfolio regularly and rebalance the allotments whenever necessary.
• Minimise your portfolio costs, such as transaction fees, tax and other costs, to maximise your profits.
• Consider investing for longer periods of time to avoid market fluctuations and stress, and employ a disciplined approach.

Conclusion

Managing multiple portfolios in a share market trading app can be a challenging task. But by using the above-mentioned simple tips and strategies and the management tools in your app, you can ease your trading journey and successfully manage your portfolios. So, set your goals, choose the best trading platform in India, buy shares online, and begin your trading journey today.

(India CSR)