Intelligent Investments: 5 Smart Ways to Diversify Your Portfolio in 2022




Is 2022 a good time to invest? Well, with the recent downturn, the answer is a resounding yes. Because the market is crashing, there’s more opportunity to make money. So, if you choose to invest now, you could be one of the many new millionaires that will be minted.

Of course, to enjoy long-term success, it’s best to have a diversified investment portfolio. This means using a variety of strategies to ensure that your more volatile (but high-yielding) investments are balanced out by some safe slow-burners. 

Here are a few ideas on how to diversify your investment portfolio for a prosperous 2022 and beyond:

  1. Real Estate

Real estate is one of the best investments you can make because you need only put down a small percentage of the purchase price upfront. In return, you get to control an asset that’s worth far more than what you put down. It’s also a great way to diversify your less tangible assets, like crypto and stocks. 

Investing in commercial real estate comes with additional tax-saving benefits as you can take the depreciation from your investment properties and use that to offset your income, especially if you’re a real estate professional already.

  1. Invest in Crypto

The crypto world has seen incredible growth over the last few years, with NFTs and the Metaverse world enabling this technology to find real-world uses.

For a safe long-term crypto investment strategy, make sure to invest by dollar-cost averaging the most popular coins such as Bitcoin and Ethereum. Avoid risky altcoins, and use reliable, well-vetted crypto trading platforms only.

  1. Index Funds

When building a diversified investment portfolio, investing in indexes such as the SP500 and the World Index is a must.

These index funds make it so much easier to buy huge baskets of stocks without having to personally research the fundamentals and cash flow of the individual companies you’re investing in.

The World Index, in particular, will give you the most categories to hedge against, and you may choose to overweight or underweight certain sectors based on whether or not you think they’ll do better than others.

  1. Real Estate Investment Funds

Real estate investment funds allow you to get into real estate investing with much less money. This strategy is also far easier than having to go out and find deals yourself. 

Instead of raising money and buying property yourself, the fund does it all for you. They’ll buy the property, get the tenants, set them up, and manage the property on your behalf.

In return, you’ll receive a cheque every quarter as well as a portion of the depreciation of that property as part of your passive income. Be sure to let your accountant know as they’ll be able to help you make the most of this when you file your taxes

  1. Angel Investing

Angel investing allows you to support up-and-coming inventors and entrepreneurs by investing in new companies that you believe can truly make a positive impact on the world. 

It’s a risky strategy, but the more funding startups get, the higher their valuation becomes. If you have some extra money to invest, you could be in for a beautifully high return.

Some of the best industries to look into as an angel investor in 2022 include social media, fintech, and influencer marketing.

Should you get into crypto or stick with traditional investments? The truth is that no major category will necessarily have superior returns over any other due to constant fluctuations in supply and demand. That’s why you need to diversify your portfolio to ensure lower volatility in the long run. Hopefully, these tips will help you do just that.