Wealth Connexion Provides 5 Tips for Building Your Investment Portfolio.
Investing is becoming increasingly popular in Australia, with close to 9 million Australians holding investments outside of their super and primary dwelling as of 2020. Diversifying your investment portfolio is an attractive prospect, as done skilfully, it can immensely increase your income and help you to live more comfortably. Building a portfolio centres around achieving your financial goals while minimising risks as much as possible. This can be a difficult balance to strike. As reputable financial advisors in Brisbane, we outline 5 helpful tips for building a sustainable investment portfolio.
Determine your investment goals
It may seem obvious, but one of the most important steps you need to take in developing a sustainable portfolio is to clearly map out and define your investment goals. By defining your objectives, you will also be able to identify your risk tolerance, and therefore choose more worthwhile investments.
Avoid taking uncalculated risks
In the world of investing, sometimes taking risks is necessary in order to reap big rewards. However, taking uncalculated or extreme risks when investing is not a sustainable (or wise) strategy. If you want more confidence when making decisions in your investment portfolio, contact Wealth Connexions, your trusted financial advisors in Brisbane.
Don’t rely on past performance
To effectively manage risk and create a more sustainable portfolio, you should not rely solely on past performance when making investment decisions. Not only does this severely limit your perspective, but it also leads to a lack of diversification in your portfolio and puts you at risk of losses due to the dynamic nature of the market.
Review your portfolio regularly
As the value of your investments may shift over time, it is a good idea to regularly review and rebalance your portfolio. This also enables you to assess your risk levels and make adjustments as needed. Furthermore, from this process, you may also decide to diversify your holdings or adjust your risk tolerance based on changes to your financial situation.
Be patient in your investments
When it comes to investment portfolios, it pays to be patient. Building a robust and successful portfolio takes time and effort, so it’s important to not make short-term decisions based on sudden market movements. It is a much more sustainable strategy to adhere to your long-term, well-established investment decisions.
Developing a sustainable investment portfolio is not a one-size-fits-all process, so it helps to have an expert on board to help you make decisions. Wealth Connexion are Brisbane financial advisors who will give you sound advice on how to build a portfolio that meets your financial goals. Contact us today about reviewing your investment portfolio.
