How to best manage your investment portfolio
Want to your savings to work harder for you? Or looking for a way to earn money without returning to work? Find out how to best manage your investment portfolio.
Many mums have found investing some of their spare cash a great way to earn more. This can be a handy way to have more to save for your children’s future or to treat the family with now.
Some mums will even make investing in the various financial markets their new career path after pregnancy. Rather than returning to their old job with all the stress that it may involve, they use their talents and experience to make money from home through investing.
Although starting out as an investor can be challenging, you may also hit something of an investment wall after you have been doing it for some time. If you already have a portfolio in place, it can be just as tricky to decide how best to manage it for the future.
Diversity is key
If this applies to you, then don’t worry – all investors come across the same problem at some point. The best tip that you can take on board here is to diversify your current portfolio as you move forward. This simply means adding assets from different companies, classes or markets into your portfolio.
The reason behind this management tip is straightforward – it avoids having all your eggs in one basket and spreads your risk across a variety of markets or asset types. If one market or sector crashes, then you still have your other investments to balance the books.
Look at new trends in trading
To diversify successfully, you need to look at what new trends there are in trading to take advantage of. It is important to note that diversifying does not always mean trading in new markets. You can still spread your risk within a market that you currently trade in by adopting new ways of trading or investing in more than one asset.
But which are the best new trading trends and investment opportunities to grow your portfolio?
One of the best new trends within trading to manage your current portfolio is social trading. This sees you copy other more experienced traders and follow the trades they make. Naturally, the expectation is that you will benefit from their knowledge over time and take advantage of more winning trades by copying them.
Social trading is a growing phenomenon that lots of people use now to widen the assets in their portfolio and help discover new trading opportunities that they otherwise would have missed.
We all know that AI is becoming ever more advanced as the years roll by, and this has seen robo trading rise in popularity. In essence, this sees you entrust your trading decisions to a software package, according to pre-defined criteria that you set.
When a trade comes up on a specified market that hits this criteria, it would open it up for you. Robo trading is something for more advanced investors but does help manage your portfolio by making it more automated.
Keep your finger on the pulse
Another great way to manage your portfolio is to always keep an eye on what is happening in the investment world. Financial news sites online are a great resource here, as are websites dedicated to investing specifically.
Making sure that you are up to date with the financial news gives you early warning of new sectors that may be about to explode in popularity, such as electric cars or CBD in the alternative health industry. This allows you to grow your investment portfolio by adding sensible assets to it from these hot sectors.
Be open to alternative ways of investing
Many people will have a portfolio that mainly relies on the old classics of investing, such as stocks, bonds and currency. While this is perfectly fine, it can limit your investment opportunities somewhat over time.
If you want to grow your portfolio beyond this, then why not look at the alternative investment market? This could involve anything from peer-to-peer lending, angel investing or equity crowdfunding. Cryptocurrency is another hot investment sector now that offers something a little different.
If you really want to spread your investment wings, there are more exotic markets such as fine wine, real estate or classic cars to try.
Managing your portfolio is vital
For any mother who invests in the global financial markets, keeping an eye on their portfolio is key. This not only allows you to deal with any issues before you lose money but also helps you see how your assets are performing.
As this articles shows, it can also help you mitigate risk through diversification and discover new investment opportunities to take up.
Photo by BRUNO CERVERA