How to get a more secure portfolio with higher appreciation prospects?
Undoubtedly, one of the most effective ways to build a safer portfolio with greater potential is to diversify an investment.
In short, diversification is the process of investing in different types of value assets with different characteristics and risk profiles; this significantly minimizes the impact that would be seen in the loss of a single asset and maintains profitability.
Smart diversification means incorporating instruments that behave very differently in our portfolio so that we can meet our financial goals in the different times in which they are planned.
Benefits of diversified portfolio:
✔️Diversifying helps maintain a balance if there are bad investment.
✔️ Maximize the performance of portfolios.
✔️ Protects money against changes in the economy.
✔️By covering different degrees of liquidity, potential losses are avoided by the early sale of instruments.
It should be mentioned that the benefits of diversification are more evident under normal market conditions, since under conditions of excessive volatility, most of the assets tend to move in the same direction. However, diversification does not lose relevance. A diversification strategy should be consulted with an investment expert, although it is possible to diversify with simple issues, such as allocating a larger percentage to more stable assets such as real estates, gold, etc.
Remember that diversifying our investments should be a process that makes sense and must be appropriate to our risk profile. Also remember that diversifying is sought to reduce, not increase, the risk we want to take.
Lower minimum investments for greater diversification
Investing in the real estate sector can represent an excellent alternative if you area looking for low risk assets for smart diversification, with a high degree of security and very good profitability. In short, assets with a great balance between risk and performance. Real estate is characterized by being an asset that is rarely depreciated and which normally raises its value (obtains surplus value).
Although it is clear that it is an attractive market, investing in real estate can present barriers for small and medium investors. It is necessary to have a good knowledge of the market to choose the ideal property located in an area with good growth, to know the developer and his experience, and to spend time in procedures and processes, as well as large sums of capital. This makes it almost impossible to diversify, and very difficult to make a correct investment.
Real estate crowdfunding platforms break through these entry barriers and offer high quality, selected and filtered projects with high standards to mitigate risks. Thanks to collective funding, you can invest in real estate from just €5 in Brickfy, as well as diversify the portfolio of investments in different real estate projects.
Brickfy, the best way to diversify
The aggregators are a good way to be able to view all the offers available in a particular sector on a single web page. In the case of real estate crowdfunding, the best way to see all the projects that exist is a platform like Brickfy. With Brickfy, you only have to enter the type of investment you are looking for, the type of property you want to invest in, or the city you desire. In a click, you will get a list of the projects that are most relevant to you. By doing this, you will save time and effort because you will search among the numerous existing crowdfunding real estate platforms on a single web page, and you will be able to diversify and obtain greater potential for your portfolio.