One of the main rules for investors of all sizes is not to keep all eggs in one basket. It is worth understanding it even before you make the first contribution. Even if the chosen strategy is thought out to the smallest detail, the broker inspires only trust and optimism, and the amount of profits is amazing, you still can not invest all the money in your investment portfolio in one project. On how to properly diversify in the HYIP, read the blog Bestinvestor.ru!
To begin with, it is important to understand that a big risk is not only investing all available funds in one hyip, but also simply working within the framework of only one investment direction. The right diversification strategy is the understanding that the funds should be distributed as much as possible not within the same type of activity, but between different areas of investment, subject to a constant search for new directions. Each example is clear: a part of the assets must be invested in real estate, another in securities, and a third in bank deposits. The same rule applies to electronic wallets - you should not keep all the money on one service, it is better to make a bet on two or three reliable resources.
What is diversification in HYIPs and other investment projects?
This is a way to minimize the risk of losing savings (while maintaining the preferred level of profitability). First of all, you should take as a rule at least 70% assets to invest in projects with low risks, and only the rest - in profitable, but risky projects. For an investor who still has a not too impressive portfolio, this rule can be interpreted as follows:
- at a minimum, 70% of funds should be directed to low-risk (but low-income) projects, such as bank deposits;
- no more than 30% - for highly profitable (for example, HYIPs or Forex market). It is worth remembering that you cannot invest more in these projects than you can lose without fatal consequences.
Another important rule: never invest money that you borrow.
A diversification strategy should also take into account the distribution of funds within each of the assets used. This means that most of the deposits should be entrusted to highly reliable banks and only 30% - to organizations with insufficiently solid reputation but attractive interest rates.
Speaking of diversification in relation to work in the HYIP, it should be noted that the investment portfolio is also made here after a thorough assessment of risks. It is better to invest on 10% of the amount of your portfolio in 10 different projects. Then profits from different sources will be able to cover possible losses.
What do you need a diversification strategy to work?
The rule is the same: it is necessary to carefully, carefully, assess risks before being included in the project. At the same time, most of the investment portfolio should be sent to relatively safe projects, and the rest - to take a deliberate risk. To choose the right projects in both categories, you need to understand that investing in HYIPs is a responsible decision that must be preceded by serious work: collecting and evaluating information, tracking information about its solvency, assessing prospects, and most importantly - the timing of its existence.
Factors that increase the risks when investing:
- entry into the project at a later stage;
- long-term investment plans;
- the inability to pick up the deposit before a certain (long) period;
- unargumentated tariff range of HYIP, suspiciously high percentage of profitability;
- New tariff plans of the project are more profitable than the original ones.
If one or several of these “calls” are noticed, it is worthwhile to promptly withdraw your money from such a project or not to invest in it.
Diversification strategy in detail
- First of all, it is necessary to take into account that there are no strict rules, and it is not necessary to strive for the ratio of 10 to 10%. The portfolio of the investor may be seven HYIPs or 17. Another thing is important: a balanced portfolio and unequal distribution of funds in it, while maintaining the ratio of 70% - to reliable projects, and 30% - to risky ones.
- In addition, in order for the investment diversification strategy to work properly, it is necessary to constantly keep records of deposits and profits, and, in accordance with its results, reconsider approaches. Beginners can try to invest small amounts in different projects - and gain experience. Over time, it will turn out to make a portfolio and plan investments in advance.
- If it is necessary to make a choice between two or several projects with approximately the same profitability and a similar set of risks, it is better to give preference to the one in which the deposit return is included in the payments. This is a guarantee of security of your contribution.
- In frankly fast HYIPs, you should use the same accelerated tactics of work. Every day, the likelihood of such projects falling is growing, which means their risks. Therefore, you should get out of them, making a profit, even if there are no new interesting projects where you can invest the released funds.
- The diversification method does not work without a thorough and continuous assessment of the risks of participation in the HYIP. You need to understand that a smaller profit is much better than a loss. So, it is better to refuse from doubtful projects. Immediately decide what kind of profit you want to get from participating in risky projects. And leave as soon as you get it, not responding to calls for a double achievement!
Analyze, think, choose, limit yourself, assess risks and share a portfolio correctly - and then you will always stay in the black, and the experience gained in the process of investing will be only positive.
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