If you want to become wealthy you need to raise your profit quotient manifold. Which means, not just teh earnings from your job. You need to open another avenue to earn money. The best option today, which can beat gold, bank FDs, PPF or NPS are mutual funds. By investing in mutual funds, you can build a solid investment portfolio. That means, you need to save some part of your salary and invest it in mutual fund schemes. Money begets more money and your journey to turn into a money magnet starts. You can check the funds that you can invest in at the end of the article - these include SBI Magnum, ICICI Prudential, Mirae Asset and more.

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First of all, you need to be clear about your goals. Yes, you must set goals towards which you will be working. From car, house, education, marriage to a retirement with plenty of cash, all are goals. After setting goals, you need to decide in which mutual funds should you invest. However, instead of going for a new fund for every financial goal, it is necessary to have a portfolio that can help you well into the future. A great investment portfolio is a must have thing for every investor, in order to have more than just a financially secure life.

So, how to make a great investment portfolio? How many funds should there be in an ideal portfolio? Retired Colonel Sanjeev Govilla, CEO, Hum Fauji Initiative has shared some detailed information to build a solid investment portfolio, which can help you become rich. You need to understand this  and more than just that, you need to implement this - turn this knowledge into action. Here is what you need to know:
 
What is Rupee Cost Averaging?

- Rupee Cost Averaging is an approach to average out your investments
- In this, one invests for a fixed period
- More investment happens at lower prices
- Less investments at higher prices

At the end, you emerge with greater profit. How so? Read this example:

If you invest Rs 10,000 every month and the mood of the market worsens for some time, then your SIP (systematic investment plan - in which you regularly invest a certain amount of money in a MF scheme) investment can be an ideal method to have Rupee Cost Averaging. In this situation maintaining a constant SIP contribution, it leads to a better corpus and more returns in long term.

What is an investment portfolio?

- Your investment portfolio is as per your financial risk appetite.
- Investment budget should be as per the capacity of an individual
- One should create a portfolio that meets his/her financial needs

How to do diversification?

- See how much risk can you afford
- Choose instruments as per risk
- Keep your future goals in mind
- Choose funds that meet your goals in future
- One should have multiple funds in a portfolio
- PPF, Debt Fund, Equity, Gold, Real Estate are few other options to consider to diversify risk

How to choose investment instrument?

- Choose investment instruments as per goals
- Invest in debt funds for short-term goals
- Invest in equity funds for long term goals

How to invest right?

- Invest for wealth creation
- Evaluate the period for which you can remain invested?
- It would be better to have 4 funds in the core portfolio
- 3 to 5 funds are enough for an ideal portfolio
- Core Portfolio should have funds for long term

Now that you know more than just the basics of investment in mutual funds, to really get you on your way to becoming a money magnet, Sanjeev has listed his preferred equity funds that you can look at positively:

- Mirae Asset Large Cap Fund
- Parag Parikh Long Term Equity Fund
- Kotak Emerging Equity Fund

Sanjeev's Favourite Debt Funds
  
- SBI Magnum Low Duration Fund
- ICICI Prudential Ultra Short Term Fund
- Franklin India Corporate Debt Fund