Portfolio Diversification

There is a famous saying which we usually read as a finance student, which says that don’t put all your eggs in one basket. And it is very obvious. If in case some unfortunate occurs, and that bucket will turn down, you will lose all your eggs. Same is the case with money investments. Portfolio diversification is the key to avoid unfavorable circumstances. There is a lot of information available readily which guides us which investment is secure, which economy is going to rise in future, or stock price of which company is going to drop in upcoming days.

Portfolio Diversification Options

Whatever the case, everyone wants to maximize their money and wants to get the maximum return. This article gives you a guideline to look at most secure but profitable securities at the same time.

Purchase Gold

Purchasing hard valuables like gold has always shown a positive relationship with increasing man’s wealth. It is because when stock exchange market drops, people start to tend their interest towards these hard valuables. Other precious stones rather than gold may also be a good idea as well.

Keep currency of different countries

Having your money in cash is always a smart move. This directly implies to the fact that if dollar value raises, your cash grow. It surely might happen in reverse. But if you want your least risky investment, keep the money of different origins and currencies. Invest in those where you think that their economy will boom.

Online Interest checking account

This option comes with great ease to withdraw money at any point of time you want to. It also offers a good compound interest annually, up to 0.5%. On the other hand, it requires your lot of research to find out the best possible option which suits you best, but still mostly are flexible and low risk.

US Treasury Bond

This is an investment in US Government. US treasury bonds are long-term investments, whose maturity period varies from 10 years to 30 years. The minimum investment you put in worth $ 1,000 and it is returned offering 1% – 2.63% interest rate on your investment. The only drawback is that this is an inflexible investment, i.e. you can’t withdraw on your will. But it has to follow and wait for its maturity.

Deposit Certificates

They are time lapsed investment given by commercial banks and backed by Federal Deposit Insurance Banks. They are inflexible, and if you take your money before the maturity time, it charges a fee. This is the biggest negative side of deposit certificates. The return is usually fixed, and its 2% yield on average, but it depends on how much you invest.

Online Money Market Account

Online money markets offer a blend of flexible withdrawals and stable returns. This investment offers an annual interest rate of 0.5% but you can get your money out of it six times per month. Money market interest rate changes rapidly than a savings account. As the economy booms, returns become higher and higher.

Online Savings Account

An online saving account gives high returns and exceptional customer services. Through an online savings account, interest rate from 0.9 % -1.1 % can be attained. Through this investment, you can withdraw your money up to six times per year. I believe that online saving account is the future of internet banking.


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