The golden rule of investing is not to put all your eggs in one basket. By spreading investments across different financial options, you protect your portfolio from huge losses. This is because if one asset performs poorly, gains in other assets can balance the impact. A diversified strategy helps you minimise risk, maintain portfolio stability, and increase the chances of earning consistent returns even during market fluctuations.
Stock investing apps offer powerful tools and features that make diversification easier and help you build a resilient investment portfolio. Discussed below are some practical tips and tricks to unlock the full potential of these apps.
Explore different asset classes
With advanced investment platforms, you can invest across various assets from a single, easy-to-use interface. Some of the options include:
- Equities
- Futures and options
- Mutual funds
- Initial Public Offerings (IPOs)
- New Fund Offers (NFOs)
- Fixed-income securities
- Commodities
- Insurance
- US stocks
Having all these options in one trading app means you can diversify with both high-growth and stable assets without having to switch between multiple platforms.
Use in-built features to research and analyse stocks
A stock investing app is equipped with features that you can use to simplify research and make informed decisions when diversifying your portfolio. For example:
- Stock screeners: Advanced filters let you sort stocks by sector, market capitalisation, price-to-earnings ratio, growth rates, dividend yield, and more.
- Risk analysers: These tools help you understand how much risk a particular investment carries.
- Portfolio trackers: Monitor your securities in real-time, analyse performance, and check your portfolio’s diversification status. You can spot imbalances in your portfolio and rebalance on time.
- Market insights and reports: Get access to research reports, stock market trends, expert recommendations, and economic news to make data-driven decisions.
- Comparison tools: Easily compare stocks, mutual funds, or Exchange-Traded Funds (ETFs) based on returns, expense ratios, risk ratings, and past performance.
Utilise Systematic Investment Plans (SIPs)
SIPs offer an efficient way to diversify your investment portfolio with regular and automated contributions. Most stock investing apps allow you to set up SIPs across equity, debt, and hybrid categories. To start, select a fund, choose the investment frequency (e.g., monthly), set a fixed amount, and schedule a date for automatic debits.
SIPs eliminate the need to time the market, as investments automatically occur at regular intervals. This disciplined approach reduces market volatility’s effect because with a fixed investment amount, you purchase more units during bear markets and fewer during bull markets (rupee-cost averaging).
Auto diversify across sectors, industries, and themes
Diversifying across sectors, industries, and themes strengthens your portfolio by reducing risks tied to specific markets. A good stock investing app offers unique options to achieve this:
Intelligent Advisory Portfolios (IAP): These are pre-packaged equity portfolios curated by experts, designed to suit both active and passive investors.
Smallcase: Expert-designed baskets of stocks and ETFs built around specific market themes and industries, such as electric vehicles, renewable energy, IT services, and healthcare.
By using these tools, you can diversify across various investment options without requiring active management.
To sum up
Stock investing apps make it easy to build a diversified portfolio, but the key lies in choosing the right one, such as the RIISE app. Backed by the legacy of Motilal Oswal, a SEBI-registered and publicly listed company, the stock trading app offers countless useful features to simplify your investment journey.
You benefit from access to multiple asset classes, UPI-based investments, expert-backed insights, learning materials, advanced tools, and 24/7 support. Options like SIPs and expert-curated ready-made portfolios enable disciplined investing and remove the complexity of selecting stocks manually.
So, download the RIISE app and start diversifying your portfolio today!
