Is investing the most important step? Not always. The major part of executing investment needs is making assumptions regarding the returns from your investment. In a diversified investment portfolio, setting the expectations regarding its returns is very essential. While doing so, one must always keep in mind that the expectations must be realistic because the unrealistic expectations of any investor can push them towards dissatisfaction.
Now, the important question is how to set those expectations and how to know what’s the best way to make more money? Well, it’s simple! These expectations can be set by either you or by your wealth advisor. Consulting a wealth advisor has more chances of setting realistic expectations because more than an investor, a wealth advisor has knowledge and expertise related to this field. Generally, a diversified investment portfolio is expected to receive higher returns as compared to fixed deposits and other financial instruments.
There are numerous platforms to start your investing journey from, which contribute efficiently to your diversified investment portfolio, but your task does not end just after creating a diversified investment portfolio. It is obvious that higher the amount of risk higher is the investment returns one can expect. Basically your assumption of returns depends upon the types of investment you make and the way you start building and maintaining a diversified investment portfolio
There are a few things you need to keep in mind before investing and especially before intending to make more money-
• Do not calculate past returns of a few years, of a particular investment. Consider its average returns over a period of 10-15 years to be more realistic.
• Set expectations according to your portfolio and your risk appetite
• Don’t get scared of taking risk as higher the risk, higher can be your returns. Just be careful and cautious before intending to make more money.
• If you’re not an expert then make sure to consult a wealth advisor before making huge investments. It will reduce your unwanted risk and increases the chances of profit.
• Don’t aim to create a diversified investment portfolio which may be highly risky because wrong expectations and poor investment choices can cause you huge and unrecoverable loss.
Achieve your expected returns by opting from some of these financial instruments:
• Gold- Investing in this area has shown a higher level of returns than other fields of investment. It has given more than average returns in a year, for more than 5 years. You can also invest in gold or gold bonds online. You simply need to join an online investment company and visit their portal to know how to invest money online. However, before investing in gold, you can consult an expert advisor to know what’s best for a diversified investment portfolio.
• Fixed income- As per the result of over 10 years of analysis, the Government and Corporate Bonds show decently averaged returns per year. Mutual funds and income funds give average annual returns whereas banks offer a bit less returns on Fixed Deposits. Sadly, with a change in the working of RBI, the rates will be cut down leading to lower return expectations on Fixed Deposits. Investors can still approximately expect average returns for these financial instruments.
• Real estate- This field of investment has attracted a lot of attention in recent years due to its heavy returns and studies have shown an annual return of more than double the average returns in real estate, which is a great profit. Real estate is often chosen with an intention to make more money. But when expecting realistic returns, you must remember that no asset gives you continuous high returns, and real estate is no exception. So, consult your wealth advisor well before making high returns expectations and starting your investments!
Keep the above mentioned investment avenues in mind while making investment plans and start your wealth building on the right foot and with rational expectations of your goals and returns. Like the experts say, even after knowing how to invest money online, you need to make assumptions of returns for better results and to make more money.
Accumulate enough knowledge of how to invest money before doing the same and not rushing in order to make more money is the key. Keep investing and earning!