How can I best diversify my capital assets?
April 18, 2023 | 40,00 EUR | answered by Paula Köhler
Dear tax consultant,
I am Anna Stricker, 35 years old, and I work as an employee in a medium-sized company. Over the past few years, I have built up a significant capital, which I have mainly invested in stocks and fixed deposits. Now, I would like to diversify my capital to spread my risk and achieve a stable long-term return.
Currently, my capital consists of approximately 70% stocks and 30% fixed deposits. Although I have had good experiences with this allocation so far, I am aware that further diversification could reduce my risk even more. I am concerned that a too one-sided investment of my capital could lead to high losses, especially in times of economic uncertainty.
My question to you is: How can I best diversify my capital to spread my risk and achieve a stable return? What asset classes or instruments would you recommend to complement my portfolio optimally? Are there specific industries or regions worth investing in?
I appreciate your expertise and thank you in advance for your support.
Sincerely,
Anna Stricker
Dear Mrs. Stricker,
Thank you for your question regarding the diversification of your capital assets. It is very important to spread your risk and achieve a stable return, especially in times of economic uncertainty. A too concentrated investment can indeed lead to high losses, so it is good that you are considering optimizing your portfolio.
Firstly, it is positive to see that you are already invested in stocks and fixed deposits. Stocks often provide a higher return in the long term than fixed deposits, but also come with higher risk. To further diversify your portfolio, you could consider investing in other asset classes such as bonds, real estate, or commodities.
Bonds are a relatively safe investment that offers regular interest payments. You could complement your portfolio with corporate bonds or government bonds, for example. These provide some stability and can help reduce your risk.
Real estate investments, either directly or indirectly through funds, can also be a good addition to your portfolio. Real estate offers some inflation protection and can generate an attractive return in the long run.
Commodities like gold, silver, or oil can also be a good diversification option. Commodities often have low correlation with other asset classes and can help stabilize your portfolio.
In terms of industries or regions that may be worth investing in, it is advisable to focus on broad diversification. Investments in different industries and countries can help reduce risk, as economic developments in different regions often vary.
In summary, I recommend diversifying your portfolio with bonds, real estate, and commodities to spread your risk and achieve a stable return. Make sure to achieve broad diversification in terms of asset classes as well as industries and regions.
I hope this information was helpful to you. If you have any further questions or would like more detailed advice, I am happy to assist.
Best regards,
Paula Köhler
