Investing is one of the most important things that you can do for your future. Making wise investment choices can be a difficult task, but those decisions are going to set you up for a comfy future. If you’re an investing rookie or even a seasoned pro, there are some easy ways that you can diversify your portfolio to ensure that your make is safe and protected.
If you’re looking for a way to diversify your portfolio, without having to spend hours and hours researching different avenues, Betterment is going to be one of the best options for you. With Betterment, all you have to do is create an account and set your financial goals. After that, Betterment’s robo-advisors are going to handle all of the investing before you.
Betterment uses their advanced algorithm that bases all of the investments using your risk preferences and goals. This is an excellent way to diversify your portfolio in a few simple mouse clicks.
Another simple way to expand your portfolio is by using Motif as an investing tool. With Motif, you can buy stocks in dozens of different companies without having to pay the fees of each trade. Motif allows you to purchase groups of 30 stocks (called a motif) all centered around one general industry. For example, you can buy 30 stocks in companies that all deal with things like medical technology.
Because you’re buying 30 stocks in one trade, the fees are going to be drastically lower than with other services. If you’re looking for one of the most affordable ways to diversify your portfolio, Motif is an excellent way to do that.
Another way to diversify your investments is to get in the peer-to-peer lending arena. Lending Club makes peer-to-peer lending the easiest that it’s ever been. Unlike other investment options, Lending Club allows you to invest in other people.
Lending Club is a place to connect investors with real people that are looking for loans. They could need money for any variety of reasons, anything from a car loan to a home improvement. With Lending Club, the borrower doesn’t have to go through the hassle of getting approved by a bank, but can still get excellent interest rates on their loan. For an investor, it’s an excellent way to diversify your portfolio and make great returns on your investments.
When you use Lending Club, you can browse the hundreds and hundreds of possible investment options and the site will show you the risk involved in that particular investment. You can buy different portions of shares in that investments depending on how much risk that you want to take on with that particular venture.
You can even diversify you investments inside of Lending Club. The minimum you have to invest in any one loan is $25. This means if you had $5,000 to invest, you could diversify your Lending Club investment across 200 different loans. That way if one loan defaults, you have many more to make sure you still make a nice return on investment.
Real estate investing is an excellent way to let your money start working for you, but it can be a risky investment to put your money in real estate investing. Fundrise is one of the easiest ways to put your money in real estate without becoming a landlord. Fundrise allows you to put your money in diversified real estate investment trusts (REIT), which are pools of investors that are all looking to put their money into different real estate options.
Fundrise has real estate experts that will handle the trusts and ensure that all investments go through rigorous underwriting before they approved for the loan process. This is to ensure that your money is safely invested in quality real estate investments.
Index funds are a simple and effective way to diversify your portfolio without having to pay expensive fees of mutual funds. Index funds have an expense ratio of around 0.2% versus the 1.5% that you’ll see with mutual funds.
The main difference between a traditional mutual fund and an index fund is that index funds are not actively managed by a fund manager. Instead, all they to do is maintain the weightings to match index performance.
Diversifying your Portfolio
Regardless of how experienced you are at the investing game, it’s important that your portfolio is properly invested, it will ensure that your money is placed is dozens of different places. Don’t put all of your eggs in one basket. There are dozens of different ways that you can diversify your portfolio without having to spend hours and hours researching options.