FY 2025-26 Investment Blueprint: How to Build a Future-Ready Portfolio

Posted on Wednesday, March 26th, 2025 | By IndusInd Bank

The start of a new financial year brings an opportunity to reassess financial decisions, set new goals, and make informed choices. Whether you’re looking to increase returns, reduce financial risks, or ensure long-term stability, having a well-structured plan is key.

But where do you begin? Should you focus on safer options, explore market-linked instruments, or strike a balance? The answer lies in understanding your financial goals and risk appetite.

In this blog, we’ll cover:

• Assessing past investments and risk preferences
• Exploring different financial instruments available in FY 2025-26
• Balancing asset allocation based on financial goals
• Avoiding common financial planning mistakes

While individual financial decisions vary, staying informed can help in making well-considered choices.

1. Start with a Portfolio Health Check

Before planning for the future, it’s crucial to evaluate past financial commitments. Ask yourself:

• What worked? – Which financial instruments performed well?
• What didn’t? – Were there any choices that didn’t yield expected results?
• Are my goals still the same? – Have your priorities changed over the past year?

Assessing Risk Appetite

Your financial approach depends on how much risk you’re comfortable taking:

• Conservative – Prefers low-risk, stable options.
• Moderate – Balances risk and returns across asset classes.
• Aggressive – Aims for higher returns and is open to market-linked fluctuations.

A thorough risk assessment ensures that financial decisions align with personal comfort levels.

2. Financial Instruments to Explore in FY 2025-26

Various financial instruments cater to different financial objectives. Here’s an overview:

Understanding these instruments can help in selecting financial products that align with long-term objectives.

3. Building a Smart Asset Allocation Strategy

When thinking about financial planning, many people structure their approach based on specific goals and the time frame they have in mind. Different financial goals—whether short-term, medium-term, or long-term—may require different types of financial instruments.

How Time Horizon Influences Financial Choices

While individual preferences vary, some people consider the time frame associated with each financial goal before deciding on financial products. Here’s a general way people look at it:

• Short-Term Goals (0-3 Years): Financial commitments like vacations, emergency funds, or planned purchases.

People generally explore stable, low-risk options that offer liquidity to meet immediate needs.

• Medium-Term Goals (3-7 Years): Financial objectives such as home down payments, education funding, or weddings.

Some individuals prefer a balanced approach with a mix of different financial instruments.

• Long-Term Goals (7+ Years): Retirement planning, wealth-building, and legacy planning.

Since these goals extend over a long period, people sometimes consider options that have potential for long-term appreciation.

By structuring finances based on goals and timelines, individuals can plan more effectively without taking unnecessary financial risks.

Different Approaches to Asset Allocation

Since financial preferences differ from person to person, asset allocation strategies may vary. Here are some broad ways people think about structuring their financial plans:

Why a Goal-Based Approach is Helpful

Many financial planners suggest that goal-based planning allows individuals to stay focused on long-term objectives rather than reacting to short-term market trends. Having a structured financial approach based on personal objectives may help in better financial preparedness and decision-making.

By keeping track of financial goals, time horizons, and personal comfort levels, individuals can make informed choices that align with their broader financial vision.

Also Read: Financial Year-End Checklist 2025: Smart Moves to Maximise Savings & Plan Ahead

4. Common Financial Planning Mistakes to Avoid

• Lack of Diversification: Relying too much on a single asset class may increase financial risks.
• Ignoring Liquidity Needs: Locking up too much capital in long-term options may cause short-term challenges.
• Overlooking Taxation: Understanding taxation on different financial products is crucial for effective planning.
• Trying to Time the Market: Market fluctuations are inevitable; staying invested over the long term often yields better results.
• Not Reassessing Financial Plans: Periodic reviews help in making necessary adjustments based on financial goals.

A well-thought-out financial plan avoids these pitfalls and ensures better preparedness for the future.

5. Streamlining Financial Planning with Digital Tools

With the rise of digital banking and financial platforms, managing finances has become more convenient.

• Automate financial commitments through SIPs and recurring deposits.
• Use digital banking platforms for seamless monitoring of financial instruments.
• Maintain an emergency fund to cover unexpected expenses before making aggressive financial decisions.

Digital tools help in staying organised, tracking progress, and making timely financial decisions.

6. Financial Planning in Light of Budget 2025 Announcements

As per the Union Budget 2025, key changes that impact financial planning include:

• Tax-Free Income up to ₹12 Lakh: The new budget has raised the exemption limit, providing more flexibility in financial planning.
• Zero Tax for Earnings up to ₹12.75 Lakh: Due to rebates, individuals with earnings in this range may qualify for zero tax liability.
• Revised Tax Slabs & Deductions: Staying updated on tax changes helps in structuring finances better.

These updates make early financial planning even more crucial to optimise benefits.

Say Yes to a Future-Ready Approach to Financial Planning

Financial planning is an ongoing journey that evolves with changing economic trends and personal goals. As the new financial year begins:

• Review past financial decisions to identify what worked well.
• Explore various financial instruments to build a well-balanced portfolio.
• Adopt a diversified asset allocation strategy based on risk appetite.
• Leverage digital tools for streamlined financial tracking.
• Stay informed about tax changes to make better financial decisions.
• A proactive approach ensures better financial preparedness for the future.

Looking to explore financial products that suit your needs? Check out the bank’s offerings and start planning today!