Any financial guru will tell you that the most important element of any investment plan is diversification. Putting all your investment eggs all in one basket is the riskiest strategy you could take and is to be avoided at all cost.
Diversification can be achieved in various ways and at different levels. The first and most important way is asset allocation i.e. dividing your investments in to the different asset classes of stocks, bonds and property. If one asset class is suffering, chances are that the other assets in your portfolio will be doing better and can compensate. Within each of those asset classes you can diversify further, for example you can hold stocks in different sectors of activity or in different geographical areas.
The problem for many people is time. Investment markets are increasingly fast paced and constantly changing. Keeping track of individual investments can be a full time job. Which is why it might be better to trust your money to those who actually make it their full-time job to track investments. Here at Infinity Solutions, I can help you determine your level of risk and your investment goals and advise accordingly. Infinity Solutions then work in partnership with Tilney Bestinvest, who are the experts when it comes to investing your money.
Tilney Bestinvest offer a wide range of Multi-Asset Portfolios which mean our clients can easily diversify their investments while benefiting from the dedicated expertise of a whole team of analysts who are constantly researching individual funds and revising the construction of portfolios in the interests of maximising the potential of your investments.
So how does it work? You decide how much you wish to invest and then choose from five different strategies ranging from aggressive growth, which is the riskiest option, to defensive, for those wishing to minimise risk. You can also choose whether you prefer to favour asset growth or income. Tilney Bestinvest will do the rest for you, monitoring the markets and adjusting the portfolio accordingly.
Below is a sample of the Multi-Asset Portfolios (MAPs), comparing the asset allocation within a portfolio for investors with different levels of risk tolerance. As you can see the more adventurous the portfolio, the higher the proportion equity assets. Conversely in lower risk portfolios there is more investment in hedge funds to protect against the downside. Generally more adventurous portfolio will have higher investment allocation in less stable but potentially higher return regions, such as emerging markets or in companies with a lower capital value.
If you would like to find about more about diversification, Multiple-Asset Portfolios or how you can be saving and investing with Infinity and Tilney Bestinvest please click this link and contact me