3 Ways to Future-Proof Your Investment Portfolio

As a Private Equity investment fund-vehicle managing multiple projects & entities, we know first-hand how important future-proofing your investment portfolio is.

In this article, we are going to share our thoughts on investment tactics and tips to help you make better investment choices for long-term growth.

Although ‘investment insurance’ isn’t technically possible, there are still ways to help mitigate your risk, whilst still embarking on those high-risk opportunities which typically hold the greatest potential, just like Private Equity offerings in the medicinal cannabis market.

 

Top Tip #1

Prepare yourself for inflation and decline

If there is one thing COVID-19 has taught us, is that we must adapt quickly to change. We are living in unpredictable market conditions and therefore you may witness an extended period of turbulence in your portfolio.

You may want to consider the rate of inflation and how this may be eating away at your savings… Inflation is the rate at which the prices for goods and services increase.

Most of the G8 countries and banks have an inflation target of between 2% and 2.5% per year. [1] Unless interest rates are higher than inflation, it will always reduce the value of money.

Investing is a great way of beating inflation, particularly during an economic crisis when inflation rates and taxes are expected to increase in the coming months.

Be cautious and think long term, don’t invest in this asset class if you’re wishing to make a ‘quick buck’.

 

Top Tip #2

Diversify, diversify, D I V E R S I F Y 

This is the key to future-proofing your investment portfolio and is possibly the most important tip of them all. You’ve heard of the term, “don’t put your eggs all in one basket”

The same applies to investing wisely.

If you spread your capital across a range of different asset classes, such as bonds, equities, and alternatives you are spreading the risk as it is unlikely that all of your assets in your portfolio will decline at once.

A private equity investment into a cannabis Pre-IPO entity is an excellent alternative investment and portfolio diversifier and is showing some attractive projections. As it is uncorrelated with other asset classes like bonds and equities, it can play a critical role in helping to spread risk across an investment portfolio.

The industry encompasses a broad range of companies in business areas nearly as diverse as those represented by the S&P500 itself.

For example, investing in the asset class could also give investors exposure to health care, technology, media, financial services, and real estate investment trusts. And it’s in these sub-sectors that some of the most interesting opportunities can be found. [2]

 

Top Tip #3

Educate yourself – “An investment in knowledge pays the best interest”

Make an effort to keep up with popular investing trends and topics, this will help you to stay ahead of the market.

Platforms such as Forbes, Bloomberg, Motley Fool, and Investopedia are some of the websites that act as a great education tool to inform aspiring investors of the next best thing.

By immersing yourself in what’s going on around you, you can ensure your portfolio is destined for good things. You may learn a thing or two about your underperforming asset in the process and consider pulling down from one to serve another.

This may help maximize your returns in a new, more promising venture!

Are you an investor wishing to future-proof your portfolio? Visit JPD capital to learn about a range of pre-IPO medicinal cannabis opportunities that may just be the jewel in the crown you have been looking for…