Diversify my assets financial, me support to save more?

Invest in different types of product can be the key for do grow your benefits.
The assets financial are titles or countable annotations that give to the right buyer to receive an unrealized income from the salesman. Not usually possess physical value and are issued by companies economics as, for example, companies, freelance or governments communities. Your end is that the buyer makes profitable the money invested and that the salesman, on the other hand, obtains financing. How? The first acquires it rights on the actual assets of the issuer and the cash that these generate.
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The profitability that obtains of they depends on the risk that wishes assume the investor. On the basis of this, find 3 types of assets financial:

Fixed income: instruments issued by the public administrations or the companies. The scant risk that assumes with her does that is the asset financial recommended for more conservative profiles, which prefer sacrifice a profitability great (expected) for a lower risk level. The treasury bills or the promissory notes of companies are some of these assets of fixed-income.

Equities: your high risk gives place to some high benefits that, however, never are policyholders to the depend on factors of major variability as the state of the accounts a company or of the market in which operates. An example of they are the stock, which recommend (together with other assets financial of the same category) to investors decided that look for high returns although the volatility of your price is higher.

Mixed Income: mix of the two previous, your risk and profitability depend on the balance between both, being great if the scale droops towards the equities and minors if it does towards the fixed-income. Ideals for the profiles moderates since them allows diversify your investment, reducing thus the risk.

The diversification: how reduce the risks

In great or smaller measure all investment generates a certain degree of risk, since is subject to conditions changing that can do that the final result not is the one which waiting. 

For this reason, and for reduce that risk, is very important the diversification of the investments. A way of equilibrate the expected return of your portfolio and, therefore, of save more.  There are several ways:

  • For assets: consists of distribute of proper shape the equities, the fixed one and the assets of the money market. This way, the benefits depend on the average of profitability of all the portfolio. For example, if have 5,000€ and the invest in the same asset financial, any problem that this has put at risk our money. However, if it divide in several, the losses that can have one compensate with the gains of another.
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  • Diversification by sector: the business cycle influences in the behavior of different sectors of the activity. For that reason is important that, if vary the economic conditions, have investments in sectors whose evolution is comparatively favorable. 
  • Diversification for geographical areas : the problem dealt with regard to the sectors can extrapolate to the countries. That is, if an investor has all your assets financial in the same country, any reduction in your economic forecastings can affect in a negative way to all your portfolio. For this reason, recommends invest in a diversified and global way. And is that not all the regions have the same behavior in every context of market, therefore a suitable combination of they allows reduce the risks associated to a single. A deterioration of the perspectives in a certain geography have thus an impact a lot smaller on the profitability of the portfolio.
  • Diversification for funds: although have good diversified your trust fund, be difficult that covers all the existing sectors and geographical areas and of interest. For this reason, is advisable diversify in more than one. This way, access a greater number of assets, sectors and geographies and, also, to teams of managers and strategies. 
  • Diversification by currency: the investment in currencies different of the euro can contribute to improve the relationship among the profitability expected and the assumed risk of our investment. 
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