When you make DotBig investments in stocks, you can choose two different options - direct and portfolio investments. The idea of indirect investments seems very good for many traders because this way they can make both long-term and short-term income. The model of portfolio investment is increasing in popularity, so why not try it and take advantage of the assistance provided by the DotBig professional analysts?
When making portfolio investments, you put your money in several stocks and mitigates the risk. At the same time, you might count on a bigger potential return from portfolio investments. All this is possible thanks to the services of DotBig investments. Learn more about how it works here and do your first indirect investment in the stock market.
Basics of Portfolio investments
The concept of an investment portfolio resembles the idea of indices. Similar to an index, an investment portfolio is a set of stocks. However, unlike the index, the investment portfolio is compiled by a trader.
Experts define two types of investment portfolios. The first one, aggressive, is associated with higher risks. Alongside this, it has better prospects to bring a big profit. If you aren’t afraid of taking big risks for the sake of potentially big profits, an aggressive investment portfolio is your choice. If not, consider creating a conservative portfolio. It’s rather a passive option that is more reliable. It might be less profitable, as a rule, however, in this case, you are more confident that it won’t fail.
Portfolio investments satisfy the conditions of various strategies. If you are willing to take short-term profits, our recommendation is to choose highly liquid shares that can be sold soon after the purchase. For long-term strategies, investors choose bonds with maturities of 5 years or more. You can also diversify your portfolio and make it more balanced by including different assets and securities. Before you explore the advantages of these strategies, learn how to build an investment portfolio.
How to create an investment portfolio?
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Create an investment account. To start investing in products of the stock market and building portfolios from scratch, you need to have the possibility to operate an investment account. The DotBig brokerage account suits this purpose. Fill in the registration form and complete the verification to open an account on our trading platform.
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Fill your portfolio with real assets that might bring profits. Your investment portfolio can include stocks, bonds, and mutual funds. Make sure that the chosen assets suit your investment strategy.
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Choose which allocation of products is the best for you. You can determine equal allocation for every product or give 80% to more reliable instruments to minimize potential losses.
Short-term income with our service DotBig
If you are looking for quick income, DotBig investments services are what you must be looking for. With our short-term investments, you get a bigger space for further moves. You aren't required to wait until securities bring profits and think of their long-term prospects when investing funds in other securities. Besides, you'll make regular profits and withdrawals, which will keep your DotBig account active and profitable. Finally, you can mitigate the risks per transaction. Don’t load high amounts and don't wait for returns for too long.
Choose short-term income strategies with DotBig international portfolio investments specialists!
Pros
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You can create a diversified investment portfolio, which will include stocks from different industries. This way you will mitigate the risk and the impact of different particular events from the stock market on your portfolio.
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Unlike in indices, you can choose which assets to include in your portfolio.
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Indirect investments don’t make you dependent on the performance of one stock.
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You can use professional assistance from DotBig analysts.
Cons
Investment portfolios and risk tolerance
When you build an investment portfolio, you must always keep in mind that it’s risky. Your portfolio and its content should be determined by your risk tolerance. Don’t build portfolios that might cause losses you are not ready to face.
Your risk tolerance is determined by many factors. Consider your purpose when making portfolio investments. If you have long-term goals, there is no point in building short-term investment portfolios.
Consider all the advantages and disadvantages of assets and keep in mind that you can always rely on the DotBig specialists! Contact your manager for more specified info about investment portfolios.
