It is important to keep in mind the objectives and goals, time frame and risk appetite. The main objective is to achieve the goals defined in the financial plan. The net flow should be positive and increasing.
Once these steps have been completed, you can start building your portfolio. It is necessary to determine the ratio of different classes in the portfolio and select the appropriate instruments. Then the rules for balancing the portfolio should be established. You can also anticipate possible scenarios of behaviour in case of significant market fluctuations. For example, change the portfolio structure during significant downturns or major economic or political events.
