How Broad Should Your Investment Portfolio Be?


You need to identify your target before you think about investing in your short-term or long-term goals, and in particular how much you need to invest.

Do I know which investment period to choose?

It all depends on your financial needs. If you believe you need access to your investment at any time, you should not take any risks and always choose investments that do not require your money to cool down at any time. In this case, liquid investments are always key.

However, if you have other liquid investments and you want to invest more money, you can always choose long-term investments (5 to 10 years) that will open your doors to more choices. Although long-term investments sometimes involve a slightly higher risk, the rewards are far greater than short-term investments.

Let’s look at different investment lengths and what they mean to you.

short term:

Professional investors and fund managers are generally assigned short-term investments of 3 years or less. These usually include a savings account, a cash market fund, or any other type of investment that guarantees you the same amount of time as your investment. Although you may not really benefit from high fees, the main benefit of this type of investment is the safety of your money.

Middle word

In the 3 to 8 year period, the medium term investment carries a small risk during your investment period, and the reward is slightly higher than the previous point. With a good diversity in your finances and a well-thought-out investment in commodities, you can make a healthy return on investment.

long term:

Often over 8 years old, long-term investments make your time your best friend. This allows you to invest in highly volatile but historically highly profitable markets in the short term, taking into account that they always return to their original levels before they reach new heights.

Find your own goals

Your goals are defined not only by the length of investment choice you make, but also by the amount of capital you have. There are usually two types of investments: one that aims to generate a small amount of capital, and one that requires a large amount of money to make a timely profit on that large investment. And you always have to ask yourself what your goal is; Avoid any risky investments that may hinder your goals if it is to save money for your home, retirement or college money.

How are you?

Even if you find the right time frame and know exactly how much to invest, investor nerves can sometimes be their own enemy. If you are worried about losing 10% of your money, it is best to choose a safe investment that will keep you busy. Long-term investment in diamonds is simply the preferred method of many people as it is a reliable method of getting a steady return every year.