At Ahmeti Wealth Management, our philosophy with diversification is consistent with the professional approach we take to all matters regarding investment portfolios and structured wealth management services.
If your investments are not as diversified as you would like and you are worried about having ‘too many eggs in one basket’, as the saying goes, then we can help. Equally, if your investments are already so diversified that it is hard to keep track of everything, then professional assistance can assist with rationalizing your portfolio. Read on to discover the three main ways you can diversify your investments in a strategically sound manner.
Wealth Management Services With a Global Perspective
In some cases, you will receive advice that says stick to what you know when it comes to diversification in investments. This can be helpful but in today’s globalized economy, it is better to look at the divestment opportunities there are around the world. Sometimes, investments close to home just don’t match the potential of those in other parts of the world where the economy is heating up.
After all, capital markets are more open around the world than they have ever been before, so why not consider investments in countries which offer the greatest yields even if they are starting from a lower economic base? Developing parts of the world often have the most attractive investment potential, after all.
Sectoral Investments Via Wealth Management Services
If you have a diversified portfolio of investments but these are spread in only one or two sectors of the economy then you may be more exposed to risk than you might think. For example, if you have invested in both real estate and financial services, then you could find that a downturn in one sector leads to a similar pattern in the other.
Diversification means spreading your risk into unrelated sectors so that you are not faced with a potential fall in your wealth if one investment happens to not work out. This is exactly the sort of advice we offer which can be fully tailored to your personal attitude to risk.
Asset Class Diversification and Managing Wealth
By looking closely at risk tolerance, it should be possible to come up with a range of long-term investments in your portfolio which fall within different asset classes. For example, most investors will want stocks, bonds, and cash investments as well as some real estate and commodity divestments in a truly diversified portfolio.
Bear in mind that each asset class also has a number of sub-classes to take into consideration, like large, mid and small capitalization stocks, for instance. For the best level of diversification, you should be making investments in some, if not all, of the sub-classes within each asset class. This way, you can achieve the greatest investment potential and meet your goals within the context of wealth management services sooner rather than later.