What is a Well Diversified Portfolio?
The truth is that just about anyone can construct a well diversified portfolio and achieve good returns without too much knowledge or risk. The key to being successful is to practice good portfolio management. Therefore, what follows is a practical framework that will allow you to not only create a well diversified portfolio but ensure you only select stocks that have a higher degree of being consistently profitable.
Advantages of a Diversified Portfolio
Diversification reduces an investor's overall level of volatility and potential risk. When investments in one industry, market sector or asset class perform poorly, other investments in the portfolio with a negative correlation to the poorly performing investments should perform relatively better and at least partially offset losses and reduce the portfolio's overall volatility. Diversification may also open up additional profit opportunities. For example, an investor who chooses to diversify his portfolio with investments in foreign stocks may find he has invested in the stocks of countries experiencing economic booms, and those stocks produce large gains at a time when the performance of domestic stocks is mediocre to poor.
Constructing your portfolio
Unlock the key to effective portfolio construction
Smart asset allocation is one of the key drivers of long-term wealth creation and capital security. That is why our focus is firmly directed towards ensuring that each client's investment portfolio is positioned for the future, while allowing for current market conditions, interest rates and currency markets, which all impact portfolio performance.
Achieve the right investment mix for you
Spreading your capital across different investments to balance opportunity and risk is a vital strategy for optimising wealth. This diversification is key to both our strategy and the support we give to every client. We can help you diversify your portfolio by investing:
across different asset classes, such as cash, fixed interest, property, and Australian and international shares
within asset classes, such as purchasing shares across different industry sectors
across different fund managers (if investing in managed funds)
into different investment structures, such as inside and outside of superannuation.
Utilise our expert portfolios to balance yours
Our Investment Committee has developed a suite of portfolio profiles exclusively for the benefit of our clients. Each has been carefully constructed at different risk levels for various investor types. Your Investment Adviser can customise and diversify your portfolio to your individual preferences. Importantly, you always remain in control of the investment decisions – we make recommendations but you make the decisions.
Access a variety of investment services and benefits
Your partnership with Metapyr Solutions gives you access to:
active cash management at attractive rates
proactive advice on initial public offerings and secondary capital raisings
unique investment solutions in a number of structured investment funds
educational seminars and regular market commentar
Diversified portfolio fundamentals
Keeping your money safer
As an investor, it’s important to keep in mind that no one is immune to risk. Putting all your eggs in one basket is never a wise move – especially if you’re looking to protect your funds from volatility and losses.
One size doesn’t fit all
Diversifying your portfolio is a personal process – it requires careful thought, strategy and analysis of current markets. We don’t believe good investment decisions come from following the crowd and just tracking an index; instead, they come from research, analysis, years of experience and a deep, human understanding of markets.
Enhancing your success
The breadth of investment opportunities is truly comprehensive. Whether it’s navigating the ASX, growing your capital via international markets, buying big city buildings or chasing outperformance in bond markets, our expert teams are focused on taking your return on investment to a whole new level.