Want to get rich? You need a Mahagathbandhan of investments; Heres why

Amid the ongoing Lok Sabha Elections 2019, political talks are dominating our everyday conversations. The talks of the possibility of the formation of a "Mahagathbandhan" taking on the ruling party has been doing the rounds for months. It is not yet clear what will happen after the elections. However, if you are concerned about your financial future, you may need your own "mahagathbandhan" of investments. 

While parties fight for power, you can apply the idea of "mahagathbandhan" to your asset portfolio in order to diversify and earn more. 

Kalpesh Aashar, CFP, Full Financial Services told Zee Business TV, ''We can co-relate the concept of Mahagathbandhan in investment also. Alliance of assets or diversification of portfolio and single asset investment are the two types of investment strategies. You should know whether the focus on single asset or alliance of various assets can fetch you better returns in future. "

Here are some tips to diversify your portfolio and fetch maximum returns, according to Aashar:

1. Invest in more than one asset class: 

Diversification helps you to get rid of volatility and reduction is overall risk. It helps to explore more asset class, adding more variety to your portfolio. ''In case single asset like equity is facing market volatility and instability, you can still earn via investments in other assets like real estate, gold, debt, bonds, deposit funds etc.''

2. Avoid diversifying in single asset investment:

''Some people invest in single asset and diversify within the same class. We have seen people, who keep on investing within the same class. For example if someone like to invest in gold, that does not mean, he/she should put money in gold jewellery, coins, bars, ETFs or gold bonds; as this is not called diversification,'' Aashar explained. 

3. Get an expert's advice:

One should always seek advice from an expert. There are certified financial planners, investment experts and independent advisers who can guide you towards the best investment options that suit your appetite and style. 

Watch this Zee Business video to know more about Mahagathbandhan of investments:

4. Research and compare all options:

Research is important before making a decision. One should never vote for a candidate without knowing about his/her past, work, records etc. Similarly comparing one asset class with others and researching is equally important to make the investment decision. 

5. Trust your instinct and remain invested for long term:

Once you have invested, you should trust your decision. ''Volatility will always be there, but aim for a longer vision and remain invested to get the best possible returns in future. There are a number of asset classes which have beaten inflation rate and bagged far more returns in a long term tenure'', said Aashar.