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3 Interesting Investments to Round Out Your Portfolio

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StrategyDriven Practices for Professionals Article | 3 Interesting Investments to Round Out Your PortfolioInvesting brings with it great potential for financial growth, but it also carries built-in risk that the investor must be aware of and manage well. The most basic and crucial lesson you will ever learn in managing investment risk is the importance of “diversifying your portfolio.” This simply means spreading out your wealth to a variety of investment categories so that no one type of investment can do too much damage to your portfolio’s value in the event that it suddenly tanks. Here are three interesting ways to invest your money and round out your portfolio.

Music Royalties 

For some people, there’s almost nothing more personal than the music they listen to, and there’s no better way to invest in that music than buying royalty shares. Investing in music royalty shares essentially means you are purchasing one or more shares of the royalties generated by a given song (which is different than purchasing the rights to the song itself). Royalties for the song (or songs) you’ve invested in are generated over several weeks and months through its use on streaming apps and other platforms, and then those royalties are divided up and paid periodically to the investors by whatever broker they went through to buy their shares in the royalty stream. Investing in these royalties can be a great way to add a unique (and even personal) touch to your investment portfolio, and the returns can be similar to those yielded by investment in securities like bonds.

Cryptocurrency 

Cryptocurrency might immediately remind you of risk, and therefore it can be difficult for some to be willing to invest any money in it. But while it is certainly true that most cryptocurrencies experience a high level of volatility, they also offer the potential to skyrocket in value, especially because of their growth in popularity and the continued interest in them that even larger financial institutions continue to show. Cryptocurrency is also tied together with a technology called “blockchain” that has great potential in itself for growth over time as it is further developed and used.

Art

Investing in art gives you a unique opportunity to really enjoy your investment in a tangible way. Art has the potential to hold value and increase in value over the long term, and in the meantime, it can freshen up and enhance your home or office for your own and others’ enjoyment. You can generally expect a return on your art investment similar to what bond investments would yield. But again, it’s critical not to over-invest in art (or any other aspect of your overall portfolio). International banker Julio Herrera Velutini writes that “it’s best to build a diverse, well-rounded portfolio of investments, with art accounting for just a small percentage.” Also, keep in mind that selling art can take more time than selling stock or other investments.

There are plenty of creative and fulfilling ways to plant your hard-earned money and see it grow over time, and these three unique opportunities can help get you started rounding out your investment portfolio. Don’t let fear or laziness get in the way of experiencing the joy of investing; get started today!

Which Business Sectors Are Attracting Investment?

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StrategyDriven Editorial Perspective Article |Investing|Which Business Sectors Are Attracting Investment?When business owners are successful, it’s only natural to start considering how they can make the most of their profits and savings. Many of these people decide to invest in other companies to get a return as they generate wealth, but it’s important to understand which industries represent the most stable investments. Becoming an investor requires just a single dollar, but it could be the start of a profitable portfolio that you, your business and family will benefit from for many years. There are plenty of sectors which offer attractive returns, but here are some of the most secure which are attracting investment.

Which are the best sectors to invest in?

When deciding which industries to invest in, there are some key factors to consider. To get the highest level of returns, you need to be willing to take risks. You can reduce some of this risk by diversifying your investments and keeping investments in place for a minimum of 5 years. It’s also important to review your portfolio on a regular basis and not to buy or sell shares based on panic or impulse.

Electricity, oil, and gas

While the world is seeking renewable energy alternatives to reduce our reliance on fossil fuels, the world is still heavily reliant on oil, natural gas, and electricity generated using these fuels. Globally, the energy sector is valued in excess of $7 trillion and by 2035 it is anticipated that the global demand for energy will increase by as much as 30%. World governments have to source fuel to keep their economy and society working which makes this sector a secure investment. Head over to read a blog by engineering and mining expert, Roberto Casula, for some key statistics on the US oil and petroleum industry.

Health care sector

The health care sector offers a wealth of possibilities for investors as it is known as a ‘defensive sector’ (it is largely immune to economic fluctuations) and has steadily increased over the last 10 years and looks set to continue on an upward trajectory. Health care is a particularly fast-growing sector for several reasons, but particularly because we are living longer than ever before.

This increased the need for care items for the elderly and there are plenty of gaps in the market for the healthcare sector. There have also been great leaps forward in biotechnology and even people without investment experience in the industry can find a niche sector to become involved in. Whether the economy is thriving or not, people still need to buy their medication.

Technology

Technology is innovation and looks likely to form the foundation for much of our society for the foreseeable future. From computer hardware and software to technology service providers, app developers and data processing, the potential for growth is seemingly limitless. The biggest technology companies include Apple, Microsoft, Google, and Facebook.

Financial sector

The financial services such as credit cards, banks, insurance companies, and brokers are similar to the health sector in that the aging ‘baby boomers’ are expected to pass on a lot of accumulated wealth to their children and grandchildren. This money will need managing and the financial services sector will be there to facilitate this.