Why all the big investors are diversifying their portfolio?
1) Those who started their investment journey in 2021, might know well the exact benefit of diversification. During the Russia Ukraine war, markets were stumbled all around the world and it almost corrected nearly 20 to 25%.
2) So those who invested in 2021 during the bull run, might there be in trouble now. Most of their portfolio's might be in red.
3) Here is where diversification comes to picture. How big investors diversify their portfolio's to hedge against volatility and sudden breaking events which plunge the entire economy like what's happening now.
4) So what diversification means ?
Allocating our capital to various range of assets which will reduce risk or volatility even during uncertain times.
5) How can we diversify our portfolio?
i) By investing in various class of assets like
STOCKS
BONDS ( either corporate or government bond)
GOLD
REAL ESTATE
NPS
CRYPTO'S
FIXED DEPOSIT etc.
ii) For Stocks - we can also do investment in US stocks through some brokers.
6) I know what everyone is thinking right now "OK BOSS, we know it all, tell us how to invest in various asset classes ?
7) I did some research and found some reliable platforms for investments.
Disclaimer : This is for educational purpose only. Do your own research before investing in any of this.
OK Let's Start
STOCKS: For those who are at the early years like in 20's or 30's and willing to take risk, you can invest some portion of your capital in stock markets.
I am 23 and i invested nearly 75% of my capital in stock market. This might be different for you based on your risk .
How to invest in Indian Stock markets ?
By using india's top 2 discount brokers
ZERODHA :https://zerodha.com/open-account?c=CJ7739
UPSTOX:https://link.upstox.com/kMj1
How to invest in US Stocks ?
Before that why we need to invest in US stocks ?
you might know the following company names and i am sure you might use atleast one of theses companies products
APPLE
AMAZON
MICROSOFT
META (FACEBOOK)
DELL
INTEL etc
I guess what you think now, yes guys "all these tech giants are from US" and many more are there.
So investing in US markers give us a broader exposure.
HOW TO INVEST IN US STOCKS :
By using the app called IND MONEY. For more details :https://indmoney.onelink.me/RmHC/t75qid8q
https://indmoney.onelink.me/RmHC/elfmyg6v
If you use the above link to open an account with this app, you will be rewarded free 250 rupee worth of Tesla or Amazon shares ( if you started investing with less than 5000 rupees) free 1000 rupees worth of Tesla or Amazon shares ( if you started investing with more than 5000 rupees)
By using the app called VESTED For more details :https://vested.page.link/ByuDJUsxSTJWV3AL9
out of 75% of my investment in stocks 20% from US market.
CORPORATE BONDS : For those who are not willing to invest in stock market but also not satisfied with FD returns, this is for you .
You can invest through WINT WEALTH, bond investing platform.
Here you can start invest from rupee 10,000
For more details please visit their site :https://www.wintwealth.com/referral/?refId=4614F7
Here you can earn stable return of 9 to 12% which is more than inflation right now (approx 8%)
I invested 15% of my investment in Bonds by using the WINT WEALTH.
REAL ESTATE : Those who have enough capital to purchase commercial properties, can purchase it and make regular rental income and after some period of time, you can sell it off and make money.
For those who don't have that much capital to buy commercial property like me, can earn regular rental income through REIT using this platform GRIP .
This is what REIT means by Investopedia.
For more details about GRIP :https://www.gripinvest.in/?referralCode=SK2908&utm_medium=Whatsapp&utm_source=referralLink
If you open an account using the above link, you will be rewarded the amount of rupee 2000 , which you can use for your investment.
I have nearly 3.5% of my portfolio in REIT.
GOLD
You can invest in Gold either through wallet like paytm, phonepe etc or directly in physical stores or through mutual funds.
I have nearly 5% of portfolio as Gold in various form.
CRYPTO
I know all of you might be in fear due to recent crash of stable coin "Terra Luna".You may take a little bit of risk by investing a small portion here.Those who are willing to take "do or die" risk , can invest here.
This is not my investment advise. Kindly do your own research before investing.
You can open account in VAULD or COIN DCX.
I invested 1.5% of my portfolio only in stable coins like Bitcoin, Etherium and Solana.
This is how big investors are diversifing their portfolio. Hope i explained clearly and kindly comment your thoughts on this.
Always have Emergency fund before investing in any class of assets. My advice is atleast 5* monthly income keep it as Emergency fund.
Disclaimer : This is for educational purpose only. Do your own research before investing in any of this.
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