Skip to content
AJT-Ventures.com AJT-Ventures.com

  • Home
  • Business
  • eCommerce
  • Finance
  • Insurance
  • Marketing
  • News
  • Real Estate
  • Contact
AJT-Ventures.com
AJT-Ventures.com

Investing: Ways To Mitigate Risk In Your Portfolio

April 10, 2015July 6, 2020

Over the years, the tolerance level for risk in investment portfolios may require some fine tuning. Often as people approach retirement age it is desirable to mitigate risk. When investors are younger, they have more time and resources to bounce back if an investment causes a loss. Here are a few ways to mitigate portfolio risk and security in the future:

Get Rid of Investments that do not Rise with Inflation 

Investments are subject to the pressures of inflation. If the investment is only paying a 2% return and the inflation rate is 4% then the investment is losing buying power every year. While a portfolio can withstand a few years of this type of loss, over time it can have a significant impact on the portfolio. Cashing out these types of investments and putting the capital into a higher return investment can solve the problem. 

Diversify the Portfolio 

A diverse portfolio can reduce risk. If all capital is invested in only a two or three investments and one starts losing, the losses can add up rather quickly. Spreading out investment capital into a diverse portfolio can ensure that exposure to risk is minimized. Investing in stocks, bonds, mutual funds, real estate, etc., can all be part of a solid portfolio. 

Mutual Funds and Market Risk 

When the stock market takes an overall dive, the value of mutual funds can go down accordingly. Mutual funds are a great way to invest but they are not a total investment solution. Although they do spread out investment capital, they are subject to market fluctuations. Not all funds have the same risk level either. If a portfolio is invested in a mid-cap fund then the level of risk will be higher than if invested in a low-cap mutual fund. The higher the risk, the higher the potential for greater returns if the stock market goes up. 

Good Advice=Less Risk 

Good management of a portfolio can help identify areas of risk and minimize them. Over the years financial goals and lifestyle changes can make changing investment portfolios an essential component of future well-being and success.  Investment professionals such as Pete Briger of Fortress Investment Group have years of experiencing helping people protect their investments and plan their financial future so they can enjoy and maintain a comfortable lifestyle.

Finance

Post navigation

Previous post
Next post

Related Posts

Finance How To Obtain Fast Cash In Singapore?

Why Is It Important To Choose Trustworthy Council Tax Advisor?

Alice J, August 26, 2014July 6, 2020

Smooth functioning of the Councils depends much upon sufficient funds for carrying out different tasks…

Read More
Finance

Types Of Injuries Covered By Federal Workers Compensation

Sophie M, January 14, 2015July 6, 2020

Federal workers compensation began as an act that was passed by congress in 1908 for…

Read More
Finance Rising Credit Card Debt In Norwegian Households

Rising Credit Card Debt In Norwegian Households

Mike W, June 5, 2018July 6, 2020

Norway is one of the richest countries in the world. Still, Norwegian households are seeing…

Read More

Recent Posts

  • How You Can Grow Your Business with Kitting Services
  • Digital Marketing in Vietnam 2022
  • Private Schools in Boston
  • Key Investment Trends Of 2021 and They Will Fare In 2022
  • Trading Patterns: What You Need to Know
  • Avoiding Unrealistic Expectations In Forex Trading
  • Medical Injection Molding
  • How to File For A Personal Injury Claim
  • Do You Do Enough To Sell Your Brand?
  • Get More from Your Employees
  • Tips To Improve Business Efficiency
  • Protect Your Business With This Cloud Migration Strategy

Archives

©2025 AJT-Ventures.com | WordPress Theme by SuperbThemes
  • Home
  • Business
  • eCommerce
  • Finance
  • Insurance
  • Marketing
  • News
  • Real Estate
  • Contact