The most convenient investment portfolios are those that maintain a good balance between risk and return. To achieve this desired balance, it is essential to diversify investments in the markets that move the most. Especially, concentrating on overseas assets.
Thus, for example, the economy of the United States offers you interesting opportunities to increase your wealth. You can do this through investment portfolios, which consist of a combination of different financial assets, in which you invest in order to maximize return.
What characteristics do these portfolios have and how to create an investment portfolio that fits your needs?
See also: Investment Horizon in Miami: keys to successful planning
Main characteristics of investment portfolios
If your goal is to build a strong wealth for yourself and your family, diversification is key. Learn about the main characteristics of investment portfolios and what they are for:
They have different assets
They usually combine assets of different types, such as stock market securities, real estate, investment funds, ETFs or Treasury bills, among other options.
The main objective of diversification is to achieve an optimal level of profitability, and, at the same time, reduce the risk of loss. This is achieved by maintaining diverse assets simultaneously.
Each of the products has a certain interest rate, as well as a maturity and a form of trading in the market. Therefore, before investing, it is essential that you familiarize yourself and understand its characteristics and its operation.
Are fixed or variable in nature
Investment portfolios bring together both fixed income and equity assets. The former offer a lower profitability, but safe, stable over time and predictable. On the other hand, equity assets are more volatile, therefore, their risk is higher, although they can generate more profits in less time.
Choosing one or the other product will depend on your goals, the projected deadlines for your investment and the money you are willing to risk.
Tips for creating an investment portfolio abroad
Do you want to invest outside Colombia? Keep these tips in mind, with the aim of diversifying and optimally managing your investments abroad:
Plan your investment
There is a wide variety of assets, fixed and variable income, in which you can invest. Therefore, you need to think about the products that interest you most, as well as when to acquire them and what proportion of your portfolio they will occupy.
This is especially important if you plan to invest in real estate. Take some time to assess the situation of the real estate market. This way you can detect the right moment to buy and what type of project you should choose. For example, you can choose between apartments in black work, brand new or second-hand.
Create a budget
Think about how much money you are willing to invest in each asset to put together a profitable portfolio. Creating a budget will help you maximize your capital, take advantage of good buying opportunities, negotiate prices and know how to adjust to your possibilities.
In this regard, keep in mind that prices per square foot in Miami are among the most competitive in the country (El Colombiano, 2022). If you are interested in including real estate in your portfolio, this city is a viable alternative in terms of costs.
Keep track
Investment portfolios need constant monitoring to know the ups and downs that each asset is having. This way you can know if you are getting the projected profitability or if it is time to sell. In the case of real estate, keeping a good control will allow you to adjust the price of the rent or close a good sale.
In this sense, it may be a wise idea to have the services of a company specialized in the real estate sector, because it will help you manage your investments, so that you obtain a good return, under personalized monitoring.
Calculate profitability
Before deciding what to invest in, you need to know the profitability of each asset separately. Later, you can estimate the return that gives you the total of your portfolio.
Are you thinking of including real estate in your portfolio? In recent times, the profitability of real estate in Miami has been around 10% per year. This figure is very attractive for foreign investors, especially Colombians, who have been at the forefront of the sector.
Undoubtedly, investment portfolios are an interesting alternative to increase the profitability of your assets. Start designing your own portfolio and invest your capital in a way that suits your investor profile, get advice from our experts, at PFS Realty we accompany you to make the best decision.
References
Alvarez, Juan Pablo. (2022). Keys to diversify an investment portfolio and dose risks. Bloomberg. https://www.bloomberglinea.com/2022/04/17/claves-para-diversificar-una-cartera-de-inversiones-y-dosificar-riesgos/
The Colombian. (2022). Colombians, in the top 5 of those who buy the most houses in Miami. https://www.elcolombiano.com/negocios/el-pais-con-mas-oportunidad-para-inversion-inmobiliaria-en-miami-OG17667292