Portfolio Diversification: Opportunities You May Be Missing

Investing smartly can help your money mature and give you a fiscal advantage in the future. However, there is more to investing than choosing a few routes that might be within your budget. To ensure your money has the opportunity to mature and grow and give you back a return that is worth it, you must actively diversify your portfolio. A diversified portfolio can minimize risk, give you a more significant return, and allow for more returns from multiple sources.?

Choosing where you invest can be overwhelming, but it does not need to be a one-and-done situation. In an ideal portfolio, you have a mix of short-term and long-term investments that you regulate throughout the year to ensure you get the most out of them. With all of the options out there, here are a few opportunities you may be missing.?

S&P 500 Index Funds

This investment gives you access to 500 of the country’s largest corporations. This can be an amazing addition to any portfolio as it provides broad and diversified accessibility to the stock market in already excelling companies. It offers a less risky approach to stock investing than singular stocks, as these companies are already well established and remain stable through market changes. You can find businesses such as Amazon and Johnson & Johnson in the outreach of this investment.?

Certificates of Deposit

Also known as CDs, certificates of deposit offer investors a bank-issued investment that offers a higher interest rate than average saving accounts. While this is not the most interesting or name-brand investment option, it can lead to a stable return and a high one at that. CDs can be short-term and long-term investments, depending on when you plan on taking money out of the account. A short-term CD can be best if you want to re-invest at higher rates. They are a great way to lock away a set amount of money and get it back, along with the amount earned from interest over time.?

Nasdaq-100 Index Funds

Similar to S&P index funds, Nasdaq-100 index funds expose investors to multiple corporations. In this case, they are specifically large tech companies. If you do not want to settle on a few or go through the hassle of finding the right ones, this investment option is ideal for investing in multiple companies and getting back returns on various assets. However, this investment option has significant volatility and can be suitable for those looking for a three-five year investment.?

Hard Money Loans

Hard money loans are your chance to invest in your future and a piece of property that can earn you a passive income down the road. This investment type consists of a short-term, non-conforming loan for real estate and takes a shorter time to pay off than an average mortgage. Whether you are looking to flip a house, renovate, or purchase an investment property, hard money loans can be the first step to success. They offer a faster approval process and a less rigorous approach to a money loan than other lending options. Adding a hard money loan and an investment property to your portfolio can bring long-term wealth and success.?

Diversifying your portfolio can be your answer to higher returns and lower risk, and a hard money loan can be the next addition to your portfolio. If you have found the property for you and need help with the next steps, contact KC Investors to get the funding you need.?

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