The diversification of investments is very important when building your assets. That’s because it helps protect your investments so that you don’t compromise your profitability. In this sense, it is essential to thoroughly study each application option, understand how the financial market works and what the liquidity of each alternative is, so that you can make your choice.
At this point, it is possible to vary between the most conservative and the riskiest investments, but always with your feet on the ground and with good planning so as not to have unpleasant surprises that can take your sleep away.
Want to know how to do it safely? So, continue reading this article until the end that we will explain what actions need to be taken at that moment. Follow us!
Why is it necessary to diversify investments?
In short, diversifying investments will help you balance your gains and losses. Although the growth of its capital slows down, there is an opportunity to build a good equity in the long term. But in addition, there are also two factors that need to be considered. See what they are!
The biggest concern of the investor is in relation to the risk of the operation. Just thinking that there is the possibility of losing all the amounts invested in a given asset class, due to a variation in the market, is already a reason to cause chills in anyone.
In this sense, the diversification of investments presents a solution to this problem: the reduction of risks. This is only possible because, through it, it is feasible to invest your capital in several different asset classes. Therefore, whenever you have any type of loss in one application, the profitability of the others can make up for that loss, making your income not to be harmed.
Potentialization of gains
Each and every investment has a risk – no matter how minimal, it still exists. Thus, it is worth noting that, even if you invest your money in a lower risk investment, there is still the possibility of losing money. But when you diversify your portfolio, in addition to reducing the chances of losses, you are also able to enhance your gains.
This is because, through it, it is possible to have more options for profitability. For example: if you invest in Tesouro Direto, the return is likely to be good, as it is a safe investment. But if, at the same time, you invest in the stock market, your return can be even greater – as long as the options are well studied and analyzed.
How to do this?
Once you know the importance of investment diversification, it’s time to know how to do it right without compromising your profitability. Check out!
Know your investor profile
In general, there are three types of investors: conservative, moderate and bold – or aggressive. Get to know each one of them.
Conservatives are those who have a greater risk aversion and seek to preserve assets above all. For them, keeping money safe is more important than increasing earnings.
This category also includes beginners and those who wish to create emergency reserves and, therefore, look for high liquidity alternatives, that is, that are easy to withdraw.
Moderates are in the way between conservatives and aggressive ones. Like the former, they aim to preserve the heritage. However, to maximize their gains, they are willing to take some risks.
For this reason, they use part of the money to buy quotas and assets with less liquidity and invest a part of what they have in options that can generate greater gains.
The losses, however, are calculated. Therefore, they tend to have more resources to diversify investments and work with medium to long term horizons.
With a more aggressive profile, the bold are those who are after higher profits. For this, they assume the risk of losing a portion – or even the whole – of the amount invested.
In general, they have a wide knowledge of the national and international financial market and have a high equity, to the point that the amounts invested are not needed in the short and medium term. With a long-range perspective, they believe that any losses in the present will be compensated with future gains.
Define the asset class
After defining your investor profile, that is, what risks you are willing to take, it is time to select your asset class. Among them, you can choose the fixed income investments that, although offering a lower profitability, tend to be safer and, also, you can choose applications in variable income, as is the case of bitcoin – the decentralized digital currency, which brings excellent financial returns.
Track the results of your portfolio
After assembling your investment portfolio, you need to monitor the market in order to check if the investments made are giving the expected return. If you think it is necessary, you can rebalance your portfolio. For example, if you have noticed that high-risk investments are giving better returns, you can make some changes. If, before, only 25% of your portfolio represented investments in variable income, now you can increase it to 50%.
Seek expert help
The financial market is very complex, for this reason, there is little care when it comes to diversifying your investments. But not everything is lost. It is important for you to know that it is possible to count on professionals specialized in the area who have the necessary expertise to analyze your investor profile and indicate the best options. So, look for a professional you trust to help you make good financial returns.
The diversification of investments is essential to make your profitability safer. If you are looking for good applications, it means you are looking for a better future, right? Therefore, be sure to follow our guidelines so as not to make a mistake in choosing and thus damaging your finances. Always study and, of course, count on the support of experienced professionals in the financial market.