How Do Investors Build a Diverse Portfolio?
The golden rule of investing.
Diversification. It’s a term investors will hear a lot but the importance it holds can’t be stressed enough.
Having a range of investment assets can help you mitigate risk in one market and drive wider income streams through multiple channels.
But how do you build a diverse portfolio? What are the best assets to consider and how do the ultra-rich invest? We examine why people invest and then see how they’re investing, providing you with the stats behind the most aspirational investments and what people are actually investing in.
Read more to see why these are the most common investment strategies currently used in portfolios across the globe and how you can adopt these investment vehicles into your own personal strategy.
Looking to Scale Your Property Investment?
As a seasoned investor, Andy has a wealth of experience in building a high-performing property portfolio and how to effectively scale over the long-term. We speak to him about what kickstarted his investment portfolio and how he’s developed his long-term investment strategy.
Join Andy as he explains what he loves about investment and how he got to where he is today, with unique insights you can apply within your own investments.
Which Investment Strategies Are Right For You?
It’s a common question amongst investors.
When it comes to investment, there’s no right or wrong answer for the strategy you should adopt.
Many people are at different stages of building their investment portfolio and indeed, life in general. This means that many people have different end goals they want to achieve.
This end goal is vital for informing the investments you’re looking to make, from the asset to your holding pattern.
Join us as we look at some of the most common investments and how they could be adapted to meet your financial goals.
Investment Strategy FAQs
How do I build a property portfolio?
The most important thing to remember is everyone starts somewhere. Invest in a single good property and then scale based on your results. There are various strategies for building a portfolio (such as the Five Year Plan) but generally, you want to maintain a positive cashflow and re-invest wherever possible.
Always work with trusted partners to ensure that you have the means and the planning in place before you consider scaling your investments.
What is a HMO or House in Multiple Occupation?
A HMO or House in Multiple Occupation is a property type often utilised by Buy-to-Let investors. The basic definition of an HMO/House Share is a property where each room is rented on an individual basis.
HMO’s are popular because they have plenty of scope to deliver higher rental income – a bigger property can have rooms which can be converted into bedrooms, creating the potential for more tenants and thus, more money.
When to buy and sell your Off-Plan properties?
When to buy and sell your off-plan properties is all down to personal choice. Many people choose to sell the property once it’s completed, reaping the rewards of capital growth during the build process which may take a few years. SevenCapital Off-Plan Past Performance demonstrates as high as 30% growth over the build process.
Others choose to rent out the property achieving higher yields and creating sustainable capital growth over many years. Rental yields vary depending upon location, purchase price and demand within the area.