Utilising Extra Cash In Portfolio

Your article on cash utilisation was insightful. But my question is, what are the practical investment avenues to invest the extra cash in my portfolio? - Abhilash Jain


Editor Responds : Thank you for writing. There are many ways to use extra cash in your portfolio. Some of the most common options include an emergency fund. You should have enough money to cover your living expenses for at least three to six months. Also, you can park the extra cash in liquid funds. They are a type of mutual fund that invests in short-term debt instruments and are highly liquid, meaning you can redeem your investment at any time. Additionally, if you have the knowledge and risk tolerance, you can buy individual stocks. This gives you more control over your investments, but it also requires more research and effort. If you are not sure how to choose the right investments for your portfolio, it is a good idea to consult with a financial advisor. They can help you assess your risk tolerance, time horizon, and financial goals, and develop an investment plan that is right for you.