The most convenient investment portfolios are those that maintain a good balance between risk and return. To achieve that balance, so desired, it is essential to diversify investments.
Thus, for example, EQUATH offers you interesting opportunities to increase your assets. You can do this through investment portfolios, which consist of a combination of different financial assets, in which you invest in order to maximize return.
What characteristics do these portfolios have and how do you create an investment portfolio that fits your needs?
Main characteristics of investment portfolios
If your goal is to build a strong wealth for yourself and your family, diversification is key. Learn about the main characteristics of investment portfolios and what they are for:
They have different assets
They typically combine assets of different types, such as stocks, real estate, mutual funds, ETFs, or Treasury bills, among other options.
The main objective of diversification is to achieve an optimal level of profitability, and, at the same time, reduce the risk of loss. This is achieved by maintaining various assets simultaneously.
Each of the products has a certain interest rate, as well as a maturity and a way of trading in the market. Therefore, before investing, it is essential to familiarize yourself, to know its characteristics and its operation.
Are they fixed or variable in nature?
Investment portfolios bring together assets, both fixed income and variable income. The former offer a lower return, but safe, stable over time and predictable. Instead, variable income assets are more volatile; therefore, their risk is higher, although they can generate more profit in less time.
Choosing one or the other product will depend on your objectives, the projected terms for your investment and the money you are willing to risk.
Tips for creating an investment portfolio abroad
Do you want to invest in Barcelona? Keep these tips in mind, in order to diversify and optimally manage your investments abroad:
Plan the investment
There is a wide variety of assets, fixed and variable income, in which you can invest. For this reason, you need to think about the products that interest you the most, as well as when to buy them and what proportion of your portfolio they will occupy.
This is especially important if you plan to invest in real estate. Take some time to assess the state of the real estate market. This way you will be able to detect the opportune moment to buy, and what type of project is convenient for you to choose. For example, you can choose between apartments in construction, brand new or second-hand.
Create a budget
Think about how much money you are willing to invest in each asset to build a profitable portfolio. Creating a budget will help you maximize your capital, take advantage of good buying opportunities, negotiate prices and know how to adjust to your possibilities.
In this regard, note that subway prices). If you are interested in including real estate in your portfolio, Barcelona is a viable alternative city, in terms of costs.
Take control
Investment portfolios need constant monitoring to know the rises and falls that each asset is having. This way you will know if you are obtaining the projected profitability or if it is time to sell. In the case of real estate, having good control will allow you to adjust the rental price or close a good sale.
In this sense, it may be a wise idea to have the services of a company specialized in the real estate sector, because it will help you manage your investments, so that you obtain a good return, under personalized monitoring.
Calculate profitability
Before deciding what to invest in, you need to know the profitability of each asset separately. Later, you will be able to make an estimate of the return that the total of your portfolio gives you.
Are you thinking of including real estate in your portfolio? Currently, the profitability of real estate in Barcelona is around 7% per year and may be higher depending on the product. This figure is very attractive for foreign investors, who today are at the forefront of the sector. Undoubtedly, investment portfolios are an interesting alternative to increase the profitability of your assets. Start designing your own portfolio and invest your capital according to your investor profile.
Bibliographic references
Alvarez, Juan Pablo. (2022). Keys to diversify an investment portfolio and dose risks. Bloomberg. https://www.bloomberglinea.com/2022/04/17/claves-para-diversificar-una-cartera-de-inversiones-y-dosificar-riesgos/
