The article explores the importance of personal investment, and factors to be considered while investing and creating a portfolio.

Investment has been identified as the postponement of current consumption in expectation of having an increased amount available for consumption in the future. For institutional investors, there are professional investment and portfolio managers. But for an individual, the management of personal investment becomes difficult, as he or she is not aware of the nitty-gritty of the investment world. Let us explore the various motives behind investments, risk factors to be considered and ways and means that can help to manage a personal portfolio.

The policies of Indian government are oriented towards consumption of funds. Like most other cases, the government is interested in circulation of money. Presently, the interest rates are low and inflation is eating up a substantial portion of the purchasing power of the rupee. Easy availability of funds and comfortable repayment terms, are encouraging individuals to spend, rather to save. Thus, there are hardly any incentives to save and invest. But on the other hand, the emergence of new investment avenues and increasing financial insecurity coupled with socioeconomic changes, are driving individuals to invest, in order to attain financial security.

Portfolio Organizer Magazine, Personal Investment Management, Financial Security, Financial Engineering, Investment Avenues, Risk-free Securities, Short-term Investments, Long-term Investments, Portfolio Management Techniques, Industrial Sectors, Tax Liabilities, Banking Regulations, Governmental Policies, Government Securities, Growing Stock Investments, Financial Assets, Performance Evaluation Techniques.