Diversifying assets
These types of assets might not make you a lot of money on their own, but they could act as a cushion in tougher moments for your portfolio.
Diversifying assets include:
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Cash
By this we usually mean easy access accounts. Returns are likely to be low, but they’re lower risk.
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Government bonds
These are similar to corporate bonds, only you’re loaning your money to a government for its spending needs. As governments are usually considered more secure than a company, you’re more likely to be paid back. Although the safer nature of government bonds usually means the interest you receive is lower.
A balanced fund at work
A Skipton financial adviser could help you to invest into funds that suit your circumstances. They will feature a blend of growth and diversifying assets, which mirrors your appetite to risk. You can invest a lump sum from £20,000 or £500 per month.
With the help of an adviser, you can build an investment portfolio that suits your personal feelings to risk and reward. For example, if you have a higher risk appetite, you might have a portfolio with a higher amount of growth assets. If you’ve a lower risk appetite, you could have a portfolio with more diversifying assets than growth assets, to give you more balance.