A good investment portfolio is completely tailored to your investment profile. You would not buy a car that does not meet all your requirements, so why would an investment be any different? And these requirements will always differ from person to person. What are the best types of investment for my profile? How does my portfolio suit me?
Defensive investors are not keen on major risks. This type of investor will want to buy shares, for example, but will always be very cautious. The majority of small investors form part of this group of investors. These tactics will generally result in a very limited amount of profit, but it is incredibly safe. Stable investments like bonds and property are the most popular within this group.
The neutral investor will take a little more risk, providing everything stays well-balanced. The balance between certainty and uncertainty is essential. That’s why they will always opt for a balanced mix of shares, bonds and raw materials, such as diamonds.
Dynamic investors are fixed on long-term investments. This will give volatile investments, such as shares, the opportunity to correct themselves after suffering major losses. This investor’s ultimate aim is a high future return. And they are quite happy to wait for that: an average of five to twenty years. Raw materials are considered and property is also very popular with this profile.
The offensive investor will take the most risks. They are particularly involved with shares and are prepared to take high risks and opt for shares with an uncertain long-term return. The profit margins are enormous with this type of investor, but it does require in-depth knowledge of the market.
You can very easily find out your investment profile yourself. However, simply reading a brief description and instantly making a decision about your preference is not enough. A good investment will depend on your certainty of making the right choice, before spending your budget. So carefully determine your investment profile before you take the appropriate steps.
So, what is a good investment for each profile? Generally speaking, the type of investment will greatly depend on each individual profile. However, there are certain exceptions — like diamonds. This natural raw material offers a high-level of return, is located in a growth market and is a safe haven in times of crisis. In addition, you will always be able to find a diamond that suits you. Higher or lower returns, more or less risky: a diamond will suit every type of investment profile.
Contrary to what people often think, you don’t need an enormous starting capital to invest in a diamond. So how do I go about making a good investment for my budget? By asking the BNT Diamonds experts for advice.
