Securing financial freedom is something everybody dreams of. Investing is one way you can do this. If you’re an investing veteran, you’ll know that diversifying your portfolio is key to saving your money from the ups and downs of the economy today. The third quarter of 2021 has proven weaker than throughout the entire recovery of the market since the pandemic started. We are here to show you what you can invest in to diversify your portfolio in 2021 to secure your money and be on the right path to financial freedom.
One key factor to consider about investing in gold is the hedge against inflation. When the market is uncertain, your gold will retain its value. If the value of the dollar drops, the value of your gold bar increases, therefore making a very stable investment for your portfolio. You’ll never lose your initial investment and if you can weather the storms of any dips in the market you will see your gold investment increase in time. Being a universal currency, gold retains its value no matter where you are in the world and it’s as easy to buy and sell here in the UK as it is elsewhere in the globe.
You can invest in farming without having to get your hands dirty. The farming industry is set to grow as the economy recovers in the post-Covid era. As we all venture back into restaurants the dairy industry will grow. By investing in agricultural organisations such as Wynnstay PLC you are offering your investment portfolio a long-term growth prospect, benefiting you massively in the long run. According to experts, investing in agriculture is a low-risk investment, increasing in value over time which makes this one to consider.
An Exchange-traded fund is a very popular investment pathway. If you take advantage of ETF’s as part of your diversification and investment strategy you can reap huge benefits from hedging your risks, gaining exposure to particular industries and markets, and increasing your portfolio. An ETF is easy, flexible, and transparent.
- Easily traded
- Cheap to run
- Simple to understand
- Priced close to assets
- Easy to research
Most investors find that an ETF meets all of their investment needs making this a very popular choice and one to consider in your investment journey.
Index funds are an investment fund that allows a benchmark index such as Nasdaq 100 and S&P 500. Putting money into an index fund means that cash is used to invest in all companies that make up the particular index you’ve selected, giving you a diverse portfolio than if you were buying individual stocks.
For example, using the S&P 500, tracking the performance of the 500 largest companies in the U.S, investing within this fund means your money is tied up within the performance of many companies. Investing in an index fund is less risky than holding individual stocks with the overall goal of an index fund being to replicate the holdings of the index they are tracking, meaning it’s a diversified investment option. As mentioned before, we know diversifying your investment portfolio keeps your money safer.