Investors should always look for more ways to maximize their portfolios. Making strategic decisions with expert advisers is the best way to do that, but it’s also essential to understand current opportunities.
Business owners can diversify their investments in 2023 by using these up-to-date investing tips to make the most of their money.
1. Consider Investing in ETFs
The stock market is the first place business owners should look when they want to expand their portfolios. It’s everchanging, but there are secure ways to invest in it. Exchange-traded funds (ETFs) are available for purchase like traditional stocks. However, they’re packages of bundled stocks from multiple companies, so the buyer doesn’t have to depend on one entity’s success to make money.
Another bonus of looking into ETFs is the modern approach brokers have with them. Many have low to no commission fees for ETF packages. It makes them more affordable for new business owners hoping to expand their portfolios after launching their brands.
2. Purchase Real Estate
Real estate has its own market. Some people hesitate to diversify their investments with it because it’s unrelated to the stock market, but anyone can benefit from real estate purchases. The primary advantages come from tax benefits and flipping property.
The freedom lies within making long- or short-term investments depending on what a business owner already has in their portfolio.
3. Buy a Campground
Purchasing a campground can be a great diversification option. This is particularly true given the growing popularity of camping and outdoor activities. KOA campgrounds specifically can be franchised properties that fall within these three property types:
- Journey campgrounds: meant for traditional, quick camping vacations
- Holiday campgrounds: located near vacation destinations with attractions
- Resort campgrounds: meant for camping within resort grounds with included amenities
People are always looking forward to a new camping experience, so this investment is a long-term income opportunity that stands out in any portfolio.
4. Look Into Index Funds
Business owners could benefit from adding index funds to their investment plans. They’re stand-alone mutual or exchange-traded funds with broader market exposure and opportunity. The low operating costs and turnover are ideal because they don’t follow the state of the stock market. However, they match market return and risk likelihoods for long-term financial gain.
5. Buy More Bonds
Fluctuating interest rates can sour investments overnight. Bonds have fixed rates, making them a safer option for business owners. They may initially have lower returns, but they transform investors into lenders.
Companies or governments offer bonds when they go into debt to provide public services, expand corporate projects or fund other essential needs. Buying a bond provides that money, which the company or government pays back with interest. There’s also a hard deadline for returning the full amount to the bond purchaser, guaranteeing a dependable investment.
6. Find Safe Haven Assets
Business owners may consider purchasing safe haven assets when the stock market experiences a particularly turbulent time. They retain value no matter what happens. There are also numerous financing opportunities because multiple commodities can count as this type of investment.
Business owners should research current safe haven assets depending on the market. Putting money into currencies, cash metals like gold or sector stocks could be the best move in times of economic crisis. A financial adviser can help anyone looking to diversify their 2023 investments with safe haven assets.
7. Research International Stocks
The U.S. isn’t the only country with a stock market. Entrepreneurs could invest in international stocks to expand their portfolios in the coming months. Finding non-U.S. brands could lead to higher returns. The key is finding an adviser well-versed in a chosen market.
Financial experts in the selected international market will inform their clients about essential issues like potential tax complications, how much someone can invest and fees associated with purchasing outside of the stock’s home country. Relying on multiple markets could be the best way for business owners to diversify their investments in 2023 if they’ve never looked outside the U.S. in the past.
8. Get Into Green Industries
Stock market experts used to recommend investing in oil, gas and coal companies for long-term revenue. However, the rise of green energy and the government’s support through tax incentives makes sustainable investing the way of the future. This industry is on the verge of massive growth.
A recent report found that 79% of all investors are looking into sustainable stocks. Business owners can follow this growing trend by investing in companies focused on environmental change and social stewardship. Companies or brands that make positive environmental impacts on fighting global warming or supporting ecological justice could be significant opportunities for long-term financial growth.
9. Rebalance the Portfolio
Business owners must review their portfolios at least once a year, if not more frequently. Previous purchases might be losing money after a change in market conditions or world events. Rebalancing makes it clear which investments are worth keeping and which aren’t.
Redistributing the financial weight could result in immediate profits when an investment has a recent weak performance. That’s extra revenue for new business opportunities without taking cash away from an investor’s monthly income.
Another aspect of rebalancing is watching commission fees. Consider how much an investment makes and how much the broker charges monthly. Spending more on commissions means it’s time to reprioritize portfolio spending. It could save hundreds or thousands of dollars per month, resulting in more wealth for new investments.
10. Save More Cash
Most financial advisers recommend having some cash in an investment portfolio. Setting money aside diversifies funds by retaining their value. As long as inflation doesn’t cause volatility, investors can use their saved cash as extra protection if the market experiences a selloff.
High-yield savings accounts also provide higher interest rates and monthly returns. The optionality promises a future of new investments outside of how well an existing portfolio does in current market conditions. Business owners will always be ready for new positions if opportunities arise.
Diversify Investments in 2023
Business owners can begin diversifying their investments in 2023 with these smart strategies that stand the test of time. Putting money into various opportunities like international stocks, rental properties and sustainable industries aligns anyone’s finances with the most promising future endeavors. Diversity is key to having a strong financial portfolio with a greater chance of strong returns.