In the investment world, every investor wishes to get the highest return out of the market, but very few investors actually get it out of the market. there are many reasons behind it, but the most common mistake investors make is trying to get the desired portfolio return only with one investment or investing in a single class of investment which usually lends up south.
Every financial market and investment vehicle is different from each other and they have different profit potential. And a mix of these investment options can give an investor the power to get the desired return out of the market. it is an old saying in the investment world that “Don’t put all your eggs in one basket” this means nothing more but stating the importance of diversification. Diversification is the key to success and in this blog, we are going to give you all you need to know in order to achieve your target of doubling your investment.
The Key for success
In the world of investment investing in blue chip stock is always a popular option for long-term investors who prefers a relatable safe investment but on the other hand an investment in only blue-chip stock cannot give you the desired portfolio return in a reasonable amount of time and that is where the need of a diversified portfolio which consists of fast-moving assets comes into the picture
As the return of blue-chip over the last 100 years and investment-grade bonds had just yielded close to 8-10%. According to the well-known rule of 72 which tells the time it will take to double your investment based on the expected return by dividing your expected annual rate of return into 72, and that tells you how many years it will take to double your money, we can calculate the duration of time it will take to double the investment done in blue-chip stocks and investment-grade bonds which is nine years. To double your investment in blue-chip stocks and investment-grade bonds you need to give nine years to the market which is long duration.
For few investors, the slow and steady approach might work but the majority of investors wants fast profits and usually find themselves falling asleep because of a traditional play it safe investments. Majority of investors crave for excitement in their portfolios and are also willing to take risks in order to get bigger payoffs. For these huge groups of active investors, the need of including a fast-moving investment option becomes a need. To shrink this duration we need some fast moving investment options and some speculative trading tools to increase the rate of return to shorten the time it takes to double the investment.
There are many trading markets which an investor can use to accelerate the overall portfolio return but the most popular and liquid trading market is the Forex market. Forex market gives a trader everything he needs including huge market trading volume, high liquidity and a closely 24hours open platform to get into a trade on a real-time which a huge amount of leverage which majority of Forex brokers provides to the traders.
In order to double your investment in a comparatively short duration and an investor can use the strategy of putting 80% of investment in a much secure investment option like blue-chip stocks and investment-grade bonds and should put the remaining 20% in the speculative trading vehicles like forex and penny stock and options trading. This mix will not only increases the portfolio return but also keeps the investor active in the market which enables the investor to take important rebalancing decision for the long-term portfolio much more efficiently.
The Bottom Line
Doubling your investment in just a matter of few years is not an impossible task. It is a realistic and easily achievable goal if you know how, where and when to invest your money in the market. by keeping a well-diversified long-term investment portfolio with a mix of fast-moving speculative portfolio anyone in the market can not only double the investment but also make huge wealth out of the market.
With the help of a good financial advisor and a reliable trading signal provider, you can achieve your investment goal very easily without putting a lot of efforts as these professionals have the knowledge and time to do in-depth research and give the beast to their clients in order to achieve mutual growth targets. In Investtipster we believe in a long-term relationship with our clients and this is the reason we focus on the profit of the clients first then we think about our goals and our primary goal is to make money for our clients so that we can get a long-term and sustainable professional relationship with all of our clients.