How do I allocate assets in my first portfolio? | BNT Diamonds
How can I start investing money with smart asset allocation in my first portfolio

How can I start investing money with smart asset allocation in my first portfolio?

20 Jul 21
  • What is asset allocation?
  • How do I research my ideal investments?
  • What are the logical next steps when investing money?

New investors face many challenges when trying to decide where to invest. Asset allocation the most important factor of starting a healthy investment portfolio. Preparation and research are the key to high returns, safe investments and a portfolio that matches your future plans. How do I design and manage a healthy portfolio? How do I get started?

What is asset allocation?

Asset allocation is the term used in the investment sector for deciding where to start investing money and over which types of investments you divide your capital. A diverse portfolio is the key to smartly investing money, which is why it should be approached with careful thought and research. A diverse portfolio makes sure that sudden losses in one investment type are balanced by returns from different investments. For instance, when you divide your assets over real estate, stocks and commodities, sudden losses from a drop in stocks will be countered by the stable returns of your commodities.

Finding the proper investment types for your portfolio is an important, but not the first step. First, you research exactly where you should be investing your money.

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How do I research my ideal investments?

The first step in investing money smartly, is to decide how big a capital you will set aside for investments. Make sure you keep a certain amount uninvested to act as a buffer when needed. Liquidating your assets on the fly often results in losses, and a buffer will make sure you never need to do so. Secondly, determine your investor profile. Knowing how much risk you are willing to take and how much effort you are willing to put into following the market are solid bases on which to choose the investments perfect for you.

Lastly, decide on which term you would like to invest and what your goals are. Large investments on the long term require a completely different approach than smaller investments on the short term.

What are the logical next steps when investing money?

Once you have decided how you will be investing money, it is time to start looking for the perfect investment types for your portfolio. Do you prefer combining commodities with real estate and stocks, or do bonds seem safer? Finally, research which specific investments take your preference over others. Adding stocks means researching companies you are interested in and in which you see potential. Investing money in commodities means researching the market for commodities which have steadily increased in value over the years and whose losses are minimal. What does your portfolio look like?

Where can I find the perfect commodities to add to my portfolio? How can I allocate my assets in a way that perfectly suits my investor profile? Contact the diamond investment experts at BNT Diamonds for guidance in managing your first portfolio.

Fabienne Rauw
About Fabienne Rauw
BNT Diamonds Antwerp

Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six years of experience at BNT Diamonds she acquainted well with the product and the marketing around it. Her degree in PR ensures that BNT Diamonds is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

With this article, BNT Diamonds strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.