Two years ago, the crypto market boomed— crypto bros would post phrases like “WAGMI” and “To the moon 🚀🚀🚀” They would buy coins, whose rates sometimes went up by 100, making huge profits in a few hours or days. The internet was on fire, and everyone wanted to get on the crypto train.
Nnanna, new to investing and still learning the ropes, decided to invest a huge sum. He thought, “If I invest all my money in this, I’ll make great profits” However, two years later, Nnanna is at a loss. Rather than going to the moon, he finds himself crashing down the rugged roads of investing. The rocket emoji is headed back to earth, and he wishes he hadn’t put all his eggs in one basket.
Investing is buying assets whose values are expected to increase after an extended period, providing capital gains or income returns. It can be a great way to grow wealth and achieve financial goals. However, it can also be risky, and putting all your money into a single investment can leave you vulnerable to market fluctuations, just like Nnanna. That’s why diversification is so important.
Why diversify your investment portfolio?
Diversification is the practice of investing in various assets, such as stocks, bonds, and real estate, to spread out risk and maximise returns. It is a good way to protect your wealth and hedge against market vulnerabilities. The goal of diversification is to spread your risk and improve your chances of making a profit. By investing in a range of assets, you reduce the impact that any one asset can have on your overall investment portfolio.
For example, if you invest all your money in one stock that performs poorly, like Nnanna did with crypto, you could lose a significant portion or all of your investment. But if you invest in a range of stocks, bonds, and real estate, or other investment options, a drop in the value of one asset is unlikely to have a significant impact on your overall portfolio.
Ways you can diversify your investment portfolio
These are ways you can diversify your portfolio:
- Across different industries: As an investor, you can diversify across different industries, from stocks to real estate to bonds to health and agriculture. This helps to reduce the impact of vulnerabilities peculiar to each sector.
- Across different asset classes: Asset classes are a group of investments with similar characteristics and having unique risks and opportunities associated with them. Some of the common asset classes include: Stocks, bonds, ETFs and commodities.
There are a few tools and platforms that offer you the opportunity to diversify your investments. One of them is Risevest.
Diversifying your investments with Rise.
Risevest is a dollar-denominated investment platform that provides access to various global investment opportunities and allows investors to invest in global markets easily. We offer a range of investment options, including stocks, bonds, and real estate. Our platform is designed to make investing more accessible to people in emerging markets. On Rise, you can choose from a range of investment portfolios designed to suit your risk appetite and investment goals. Our portfolios are managed by experienced investment professionals and experts who use various investment strategies to achieve the best possible returns for you.
Here are some of the ways that you can use Risevest to diversify your investment:
- Invest in stocks
Risevest offers a stock investment option that allows you to invest in various stocks, particularly US stocks. By doing this, you can benefit from the potential growth of companies and the stock market. However, it’s important to remember that stocks can be volatile, so you need to diversify your investment by investing in a range of stocks.
Investing in stocks can be risky, but it can also offer high returns. Our team of investment professionals carefully select the stocks in each portfolio to ensure that they are of high quality and have good growth prospects.
- Invest in real estate
Real estate is a tangible asset that can provide long-term growth and income. On Rise,you can invest in US real estate through our Real Estate Investment Trust (REIT) product. REITs are investment vehicles that own and manage a portfolio of real estate properties. By investing in REITs, you can benefit from the potential growth of real estate without having to buy and manage properties yourself.
- Invest in fixed income
We offer our investors access to fixed income options, which include bonds. Bonds are debt securities issued by companies or governments. When you invest in bonds, you are lending money to the issuer, and they promise to pay you back with interest over time.
Bonds tend to offer a fixed rate of return, which means that they can protect you against inflation. Investing in the fixed income plan on Rise can provide a steady income stream and a means to diversify your investment across a range of assets.
Other benefits of Investing with Risevest
Investing with Risevest has other several benefits, including:
- Access to Global Markets: Risevest allows investors to invest in global markets easily. This can help to increase growth opportunities and reduce the impact of local market fluctuations.
- Professional Management: Risevest’s investment portfolios are managed by experienced investment professionals who use various investment strategies to achieve the best possible returns for investors.
- Low Fees: Risevest charges low fees compared to traditional investment options. This can help to increase the returns for investors.
- Easy to Use: Risevest’s platform is easy to use and accessible to investors worldwide. Investors can make deposits and withdrawals easily using a range of payment options.
Tips for Investing with Risevest
Here are some tips for investing with Risevest:
- Understand your Investment Goals and Risk Appetite: Before investing with Risevest, it’s important to understand your investment goals and risk appetite. This will help you to choose an investment portfolio that is right for you.
- Do Your Research: It’s important to research the investment portfolios on Risevest before investing. This will help you to understand the investment strategies, and the risks and rewards associated with each portfolio.
- Start Small: It’s a good idea to start with a small investment and gradually increase it over time. This will help you better understand the platform and the investment portfolios before committing a large sum of money.
- Diversify: It’s important to diversify your portfolio across different asset classes and industries. This can help to reduce the risk of losing money if one investment performs poorly.
How to get started on Risevest
Getting started on Risevest is easy. Here are the steps you can follow to start investing with us, and how you can diversify your portfolio:
- Sign up for an account
To get started, you’ll need to sign up for an account. Download our app on the Apple or Play store or go to our website. If you already have an account, sign in to your account here.The sign-up process is quick and easy, and you’ll need to provide some basic information about yourself.
- Fund your account
Once you’ve signed up for an account, you’ll need to fund your account. We accept payments through various payment options, including bank transfers and debit cards.
- Choose your investment options
Once you have funded, you can choose the investment options that you want to invest in, according to your risk appetite. There is the stock, real estate and fixed income options as mentioned earlier.
- Sit back and watch how your investments perform
Once you’ve invested in your chosen investment options, you can then sit back and watch your money grow. We have a team of experts whose job is to carry out market research, invest your money in high quality assets, and monitor your investments for you.