Diversifying a Portfolio

Ever heard of the saying, “Don’t put all your eggs in one basket?” This is one of the most famous proverbs in the world of investment. Its meaning is simple: as an investor, you have to think about diversifying your investments by not putting all your money in a single asset class.

Calculate the net return

Seizing a good opportunity can be exhilarating, but be careful not to double up on small transactions. In most direct brokerage accounts, fees are charged for each transaction. In order to know your actual performance, do not forget to include commission fees.

To maximize your net return, it is not enough to choose a brokerage firm that offers the best pricing. Investors must also understand that there is a range of investments that is sufficiently varied to achieve the desired results while taking advantage of the good opportunities that arise.

Know how to dispose of titles

Most investors look to invest their money early in life in order to fatten their retirement income. But investing in a long-term horizon does not mean that they can simply choose good investments and forget about them until they are due. Every investor sees his or her situation a certain way even though these issues evolve over time. In addition, markets are moving constantly and will risk compromising portfolio performance.

Even if the objectives are long-term, it is essential to revise its investments in the short term and to regularly re-evaluate its investment strategy. Kirk Chewning can help with this.

Consider alternative funding

Private equity refers more generally to any form of investment with unlisted companies, which means they are not so dependent on market fluctuations. There are specialized funds that allow individuals to invest in this asset class, but they are also mostly intended for institutional or wealthy clients. Crowd-funding or crowd-lending allows individuals access to investment in unlisted companies and in real estate projects, usually via the subscription of unlisted bonds.

Crowd-lending has the advantage of providing significantly higher than the rated bonds yields. Investors may nevertheless lose a significant portion of their investment in the event of the bankruptcy of an issuer.