What is a good investment with my investment profile?

  • Which are the different types of investment profiles?
  • What is a good investment for my profile?
  • How does the diamond fit into the story?

A good investment portfolio is completely tailored to your investment profile. You would not buy a car that does not satisfy all your requirements, so why would an investment be any different? And these requirements will always differ from person to person. What are my ideal investments? How does my portfolio suit me?

What are the different types of investment profiles?

1. What are the safest investment profiles?

Defensive investors are not keen on major risks. This type of investor will want to buy shares, for example, but will always be very cautious. The majority of small investors form part of this group of investors. These tactics will generally result in a very limited amount of profit, but it is incredibly safe. Stable investments like bonds and property are the most popular within this group.

The neutral investor will take a little more risk, providing everything stays well balanced. The balance between certainty and uncertainty is essential. That’s why he will always opt for a balanced mix of shares, bonds and raw materials, such as diamonds.

2. Which profiles will take more risks?

Dynamic investors are fixed on long-term investments. This will give volatile investments, such as shares, the opportunity to correct themselves after suffering major losses. This investor’s ultimate aim? A high future return. And they are quite happy to wait for that: an average of five to twenty years. Raw materials are considered and property is also very popular with this profile.

The offensive investor will take most risks. He is particularly involved with shares. He is prepared to take high risks and will also opt for shares with an uncertain long-term return. The profit margins are enormous with this type of investor, but it does require a very in-depth knowledge of the market.

What is a good investment for my profile?

You can very easily find out your investment profile yourself. However, simply reading a brief description and instantly making a decision about your preference is not enough. A good investment will depend on your certainty of making the right choice, before spending any of your budget. So carefully determine your investment profile before you take the appropriate steps.

How does the diamond fit into the story?

So what is a good investment for each profile? Generally speaking, the type of investment will greatly depend on each individual profile. However, there are certain exceptions. Diamonds are one of these. This natural raw material offers a high level of return, is located in a growth market and is a safe haven in times of crisis. In addition, you will always be able to find a diamond which suits you. Higher or lower returns, more or less risky: a diamond will always suit you.

Contrary to what people often think, you don’t need an enormous starting capital to invest in a diamond. So how do I go about making a good investment for my budget? By asking BNT Diamonds’ diamond experts for advice.

Author: Maxine Schepens
Source: BAUNAT

With this article, BAUNAT 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.


Most popular