Investing is a common global practice for preserving and growing savings. If funds are simply stored, even in the form of a basket of currencies, they will still lose purchasing power. That’s why many consider investing in various funds and trust management. However, you can also invest on your own, for example, on the online financial platform Metadoro that contains traditional investment and CFD-trading tools. It provides clients with ample opportunities to create various portfolios, both risky and conservative.
How is the investment process carried out?
What is an investment portfolio and how is it assembled? The main idea of a portfolio is diversification. You could invest all your money in a single asset, and if it increases in price by 100%, it would be an amazing outcome. However, such movements are seen in only a few assets, and to anticipate such prospects in advance, professional investment management is necessary. Therefore, to reduce risks and optimize investments, it is important to diversify your asset holdings. A portfolio is a collection of investments. The following types of portfolios are commonly recognized:
- Conservative. The goal is to achieve a return that is two to three times the inflation rate. In other words, we invest in assets with high reliability and moderate returns.
- Moderate. In such a portfolio, in addition to reliable investment instruments, there are also more profitable ones, and the overall profit for the year can reach values of 15-30%. The risks, accordingly, are slightly higher.
- Aggressive. Such a portfolio can be characterized as high-risk, but at the same time, the returns often reach three-digit figures. Creating such a portfolio is only recommended for individuals with the necessary level of expertise or when a potential loss of 80-90% of the capital in such a portfolio would not have serious consequences for the investor. It should be noted that this approach is closer to speculation, but overall, such a type of portfolio does exist.
What should an ordinary investor do if they don’t have specialized knowledge and are simply interested in financial markets? According to available Metadoro reviews, platform clients prefer to study the provided analytics on the website and work with a mixed-type portfolio, investing in various types of assets and creating a balanced solution in terms of risks and returns. With the wide range of trading instruments available on Metadoro, any investor can easily accomplish this.
What instruments does the Metadoro platform offer for building an investment portfolio?
Users of the platform have access to quite a lot of directions for investment. They assume a different degree of risk and, accordingly, a different income. Each of these directions can be used as part of an investment portfolio. Below, we will provide descriptions of asset categories in Metadoro and indicate their approximate allocation in a standard balanced investment portfolio:
- Bonds. Metadoro offers various Eurobonds that generate profits not only from coupons but can also appreciate in value. It is believed that the portfolio should have at least half of the capital in debt obligations. The range is around 50-60%.
- Stocks, stock indices, and exchange-traded funds. Each of these categories is of interest and has high growth potential. Typically, investors allocate around 20-30% to such assets, as they provide a significant portion of profits in absolute terms.
- Precious metals and currencies. Another option for conservative capital preservation with the potential for value appreciation. However, recently they have increasingly become speculative instruments, and investing in them should only be done with an understanding of prospects and knowledge in the field of fundamental or technical analysis.
- Cryptocurrencies. Digital assets have gained their share of interest in one way or another. Typically, no more than 5-10% of the capital is allocated to them, with a focus on exclusively established coins such as BTC, ETH, and LTC.
«I am building a portfolio in a 50/30/15/5 ratio, allocating capital to bonds, stocks, currencies, and digital assets respectively. The Metadoro platform allows me to work with all of these within a single terminal, which is a significant advantage for me», – shares one of the Metadoro clients.
According to the Metadoro reviews we have examined, working on the platform is convenient, and the platform offers a separate invest account for such trading. The instruments, except for currencies, are implemented through CFD contracts, which allows working with all the mentioned categories within a single software. This simplifies the process and makes it easy to track the portfolio’s value dynamics.
