Following are the steps to be followed while creating an efficient investment portfolio.
Find out what items or events you are saving for. These can be retirement, new home, children's education or anything else you choose.
Find out when you want to retire, purchase a home or send your children to college. It will help you to decide what percentage return you need to earn on your initial investment.
Make a decision on how much money to invest. Invest what you can comfortably afford now, keeping in mind that you can change the amount later.
Find out how much risk you are willing to take. Many investments generate high returns but are riskier than others.
Once you decide the amount you are going to invest, the returns you want to achieve, when you need the money back and how much risk you are willing to accept, put together your investment portfolio.
An investment counselor or stockbroker can be a good source of advice, tell them your objectives and ask them to recommend how to allocate your money.
Monitor and revaluate your portfolio at least once in a year.