Diversifying your investments in 2023 is a strategy based on spreading your funds around to reduce risk and maximise potential returns.
To simplify your understanding, the diversification strategy consists of investing in different vehicles, to manage the fluctuations commonly seen in an ever-changing economic environment.
Investing in a variety of assets, such as equities, bonds, mutual funds, or real estate can help you offset potential losses in one sector with gains in another.
can help you offset potential losses in one sector with gains in another.
It should also be noted that a diversification strategy can help you reduce the risk of volatility in your investment portfolio.
However, positive returns or protection against losses are not guaranteed.
In fact, diversification contributes to more prudent risk management.
So, studying the different types of investments in 2023, requires your attention to learn how to diversify judiciously, according to your financial objectives, your time horizon and your risk tolerance.
Optimising investments while diversifying: What are the options in Switzerland?
To optimise your investments, you need to define your savings objectives.
There are two main objectives here, which is to create wealth and/or generate additional income.
How do you create your property portfolio?
First of all, determine your property investment objectives. Do you want to buy your main residence? Invest in rental property? Or both?
Take stock of your financial situation and determine the right amount for your property purchase. Remember to take into account the purchase costs, notary fees, etc.
Once you’ve identified the region that suits your needs and budget, do some more research into the local property market local property market, prices, and rental vacancies etc
As a small aside, SIPA Crowd Immo simplifies all your administrative, legal and mortgage procedures, right up to the notary!
And instead of taking out a loan, you can easily become the owner and shareholder of a property, under the status of an SA.
Forget about negotiating and managing the property.
How can I generate additional income?
There are several ways of generating additional income, depending on the type of investment:
- Traditional savings investments, such as bank passbooks and life insurance.
- Property investment, such as residential rental and property crowdfunding.
- Financial and stock market investments such as shares, bonds and mutual funds.
- Income from intellectual property or industrial property, such as patents and licences.
Of course, the choice of investment vehicle will depend on the level of risk, the return, the investment period and the tax applied. You should also check the liquidity of the funds.
We recommend that you never invest more than you need for your basic needs.
Optimising investments over time and returns
As part of a diversification strategy, it makes sense to position your savings in short- and long-term investments.
For example, Life insurance meets a long-term objective, as it offers a selection of funds or investment products in which the premiums are invested. The subscription period varies between 10 and 30 years, depending on the type of contract, the insurer’s specific terms and conditions and the policyholder’s needs.
For a shorter-term investment, we can mention participative real estate shareholding, where the investment period envisaged is 5 years. The entry fee is CHF 49,000 and the rate of return is between 4% and 7%. You will receive monthly rental income and dividends once a year.
Define your investor profile according to your objectives
A well thought-out investment strategy means determining your objectives, but also identifying the level of risk you are prepared to assume.
To help you do this, SIPA Crowd Immo offers you personalised support:
Alternatives for first-time investors.
Diversification for more experienced investors.
There’s now an answer to the question of how to diversify your investments in 2023.
Would you like to invest in a reliable, easy and profitable solution ? Contact our advisers today.
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