Discover the Ideal Investment Portfolio for Each Profile

The investment portfolio at Housers is the set of tangible assets in which a person or company invests. When it comes to investing it is extremely important that you set up your ideal investment portfolio adjusted to your own profile.

With this task, you will be able to define the direction you should follow to achieve that ideal investment portfolio. Self-knowledge and decision-making in these circumstances based on the real risks that you are willing to assume is the basis of the investment decision.

In any case, regardless of your profile, the key points to follow will always be:

  • Diversify as much as possible
  • Reinvest the benefits that are generated to take advantage of compound interest, read more about the importance of Compound Interest here.

 

Learn about the three main profiles to build your ideal investment portfolio

The investor profile refers to the characteristics that guide the way you should make decisions regarding your investments. Among all these characteristics, one of the most important is risk tolerance.

The most common characteristics to define our profile are usually:

  • Be aware of our current investment needs and objectives.
  • The investment Timeline.
  • The availability with which you will need the money.
  • The level of risk with which you feel most comfortable.

As is logical, to define our profile, a whole series of factors influence. The most common are:

  • With your age and the investment returns timeline, we can establish how long we can wait for the investment profits.
  • The income we receive both now and in the future.
  • The financial obligations that we have. The more obligations, the less ability to save.
  • Patrimony with which it is counted to know the economic support that one has.
  • Savings capacity.
  • Risk tolerance.
  • Financial knowledge.
  • Expected profitability.

With all of this in our cocktail shaker, three great profiles have traditionally been established

 

Conservative or risk-averse profile

ideal-investment-portfolio-diversification

The conservative investor is the least tolerant of risk and, above all, values safety. As is logical, the preferred investment instruments are those that give you certainty and security. The potential gains are secondary.

Applied to Housers, a conservative investor will focus on BUY-TO-LET opportunities. These:

  • Are our safest typology.
  • Allow you to sell your investment at any time.
  • Provide monthly income from rent. In addition to an additional return for the sale of the property.

Learn all the advantages of our BUY-TO-LET opportunities here.

This profile usually consists of people who, in general, look for peace of mind while getting a return for their savings. We find young people with their first income, people with families to support or debts to cover until retired people who intend to supplement their pension.

It is an alternative to save in the long term without major worries as a way to build an ideal investment portfolio.

 

Moderate or risk neutral profile

 This profile continues to be cautious with its decisions but admits a moderate risk to increase its profits. Tries to maintain a balance between profitability and security.

Within Housers, the strategy could be to build a portfolio that combines BUY-TO-LET, BUY-TO-SELL and, to a lesser extent, DEVELOPMENT LOAN. In this way, we will achieve a balanced investment portfolio where BUY-TO-LET continues to have the greatest weight. At the same time, we could reach a higher potential income by increasing our proportion in BUY-TO-SELL and DEVELOPMENT LOAN, which generally grant higher interest rates.

Within this category, we find people with stable income and savings capacity.

 

Aggressive or risk-prone profile

This profile is characterized by being willing to assume a greater risk in exchange for greater benefits.

They are usually people with economic strength and moderate to high income. It is also easy to find single people or even without children, between 30 and 40 years of age.

At Housers, without losing sight of the importance of diversifying; The objective to maximize the income could be to form a portfolio where the opportunities of BUY-TO-SELL and DEVELOPMENT LOAN suppose around 70% of the total invested.

Thus, we are facing an investment strategy more focused on the medium term. Always keeping an eye on maintaining a part in BUY-TO-SELL to enjoy the returns and security of this type and achieve a maximum acceptable average score.

So.., do you know what your Investment profile is?

 Head over to Housers.com to start building your ideal investment portfolio. 

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