How to prepare a Personal finance portfolio?

         Preperation of Personal finance Portfolio is the basic step  for achieving financial freedom.This is not similar for everybody.Risk taking attitude and  financial capacity determines the nature of your portfolio.Low Risky People with less income can opt  Low Risky and Capital Presrvation Portfolio.If you are not interested in risky assets, your Low Risky Portfolio can be made by following things:
       1.Emergency fund
       2.Savings account
       3.Fixed Deposits
       4.Government and Corporate bonds
       5.Liquid fund  ETFs
       6..Public Providend fund
       7.Life and general Insurance
       8.Pension plan
           Emergency fund is common for all and mainly used for meeting unexpected income fall of a person.This may be due to loss of employment ,unexpected costs or business failure .Life and Health insurance protection is  required to prevent financial loss to the family by death or critical illness of an income earning person .So,Portfolio changes can be applied in fixed income instruments only by replacing riskier avenues.Risk and reward is correlated. So,better returns come only when you are taking more risk. If you are a High Risky Investor, Portfolo may include risky assets such as stocks and real estate.
      See the High Risky Portfolio  below:
    1.Emergency fund
    2.Savings account
    3.Government or corporate bonds
    4.Unit Linked insurance and pension schemes
    5.Exchange traded funds
    6.Shares
    7.E-Metals such as E-Gold and E-Platinum
    8.Real Estate.

   These are two Model Portfolios for better understanding about Personal finance products.Fixing adequate Proportion for each scheme depends your  risk tolerance levels.

Disclaimer: Investments are subject to market risks.