Building an investment portfolio involves selecting a mix of assets such as equities, bonds, mutual funds, and cash equivalents to achieve specific financial goals. The key to portfolio building is diversification—spreading investments across asset classes and sectors to minimize risk. A well-structured portfolio reflects the investor’s risk tolerance, investment horizon, and financial objectives. For beginners, allocating funds based on age and income is advisable. For example, younger investors may choose a higher equity exposure due to their long investment horizon. Portfolios can be categorized as conservative, moderate, or aggressive. Rebalancing is critical to ensure the asset allocation remains aligned with the investor’s goals, especially during market fluctuations. Portfolio building also includes evaluating individual instruments’ past performance, consistency, and future potential. Investing in index funds and ETFs can also provide cost-effective diversification. Overall, a disciplined, long-term strategy helps create a robust investment portfolio that grows wealth steadily.