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Planning investments and diversifying financial portfolio

Written By David Dzung on Thursday, May 14, 2015 | 5/14/2015 06:40:00 PM

Planning investments and diversifying financial portfolio is something not everyone is adept at knowing. The mind boggling jargons and lack of awareness of how some options benefit you better than the others and what opportunities make more sense in the long run is what contributes to economic illiteracy. You can always involve the assistance of a financial expert but it is a better idea to first get at least a preliminary idea of what you can expect. The options of investment and supplementary investment vehicles available are tremendous and by being oblivious to them you are doing so at your own risk. Get an overview of your overall financial status and make an informed decision with the help of your financial expert. Explore the guide that follows to get your basics in place and equip you with the knowledge that is sufficient to get you and your financial expert to plan an outline for a solid financial strategy.

Savings Account: The most basic and well known investment vehicle- saving accounts, however have not evolved in line with the financial market. Though they may not be as productive as some of the other options, they provide the safest way to park your money. The option to park your money in savings account should be considered if you have a large surplus and have saturated your portfolio. Having a savings account ensures that you have secure interest rate instruments in your kitty. Even though they are counter-intuitive, savings accounts have been used by professional investors as well.

Hedge Funds: For individuals and institutes with significant assets, hedge funds are the most ideal forms of investment. In mechanism and behavior, hedge funds are quite similar to mutual funds. However, their main difference lies in the fact that they are widely unregulated. This makes hedging investment flexible and useful when it comes to investing in risky investment techniques.
Mutual Funds: Investing your money in mutual funds is like pooling your resources together with other investors. They are usually a collection of bonds and stocks and have a set goal and can cover a variety of options like small stocks, government bonds, large stocks, company bonds, industry specific shares and bonds etc. Handled by professional investment companies, pooled resources are used to invest smartly in all the above investment options while carrying over the benefit to users.

Real Estate: With the demand for property rising and the limited resources to supply it, real estate is an attractive investment option. Not only do they increase the future potential value of an investment but also act as working assets. Real estate provides dual advantage and if invested smartly it can yield a return a lot higher than its initial value.
Financial awareness helps in taking investment decision that is sound and productive. Though the market is ever changing, speaking with a financial expert while being fully armed with the information you need, will help you approve a strategy that suits your requirements in the long and short term perfectly.

Michell Parker is the author of this article on local derivative markets. Find more information, about treasury management here


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  4. This is nice post. The options of investment and supplementary investment vehicles available are tremendous and by being oblivious to them you are doing so at your own risk. Thanks!!