How to build a portfolio of financial assets?
Want to know how to build a portfolio of financial assets and achieve financial independence? Then you’ve found the right content! Read it now until the end and see 5 important steps to get started!
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To grow your wealth, it is very important to start investing. But in a market with so many options, it is common for investors to have doubts, right?
The good news is that by following a few steps, it becomes easier to achieve your goals!
And if you don’t know where to start, don’t worry. Keep reading to find out how to build a portfolio of financial assets.
What are financial assets?
Financial assets are everything that has value and can be traded within the financial market.
They are intangible. That is, they are not found in physical form, like a plot of land or an apartment, for example. Financial assets receive a value, which is defined according to market supply and demand.
Among the main examples of financial assets, we can mention:
- Actions
• CDB – Bank Deposit Certificate
• LC – Bills of exchange
• LCI and LCA
• Direct Treasury
• ETFs
• Investment fund shares
Step by step guide to building a portfolio of financial assets
Now that you know what they are financial assets and the main types, it's time to find out how to build a diversified portfolio that will actually bring you profit. Check it out:
1. Analyze your finances
Before anything else, you need to analyze your finances and be motivated to invest, that is, save part of your money to make it yield and thus build your wealth.
And to be able to do this, you must control your earnings, investments and expenses.
Set aside a portion of your salary for fixed expenses, such as housing, rent, and groceries. These are fixed expenses considered essential.
We also recommend that you analyze your fixed and variable expenses, such as restaurants, travel, leisure, etc.
See if it is possible to cut some of these expenses so that you have more money to make investments.
Finally, check the amount available to start investing. Ideally, this amount should be between 20% and 30% of your earnings. However, of course, if possible, you can invest even more!
2. Define your financial goals
Are your goals short or medium term? Do you want to start investing to take a trip with your family at the end of the year, or to buy your own home?
This part is also very important. After all, this is where you will define your main goals that require money to be achieved.
Answer all these questions honestly so that you can put together a good action plan to build a good portfolio of financial assets.
3. Define your investor profile
O investor profile It is a classification that each investor who invests their money in an investment product receives, according to the risk they are willing to assume with their investments.
In short, your investor profile defines the type of investor you are, and, consequently, which are the best financial assets for your portfolio.
Basically, there are three investor profiles:
• Conservative: As the name suggests, investors with this profile are those who are more risk averse. They tend to prefer investments with lower profitability, but with high liquidity and low risks.
• Moderate: These are investors who are willing to take on slightly greater risks than conservative investors. However, due to market volatility, they do not give up a certain level of security.
• Bold or aggressive: These are investors who are willing to take greater risks in exchange for high profitability. In fact, they even accept negative profitability, as they always think about a higher return in the long term.
4. Choose the application deadline
In addition to risk tolerance and volatility, another extremely important factor that must be taken into consideration is the time frame for the return on your investment.
For example, if you need money in the short term, you cannot keep the majority of your portfolio in long-term investments.
And if your goal is to invest for the future, you should follow the same thought, that is, put your capital in investments that bring more advantageous returns in the long term.
Deadlines are typically defined as follows:
• Very short term: up to 3 months
• Short term: 3 months to 1 year
• Medium term: 1 to 5 years
• Long term: From 5 years
It is also important to understand the relationship between term and volatility. But what does this mean?
The shorter the term, the less advisable it is to accept market risk. However, if you intend to invest for the long term, you can take a little more risk in exchange for high profitability.
5. Discover fixed and variable income options
The financial market is full of options, so you don’t have to stick to just one investment.
In fact, we recommend that you diversify your portfolio!
To help you understand more about the subject, we will talk about fixed income and variable income investments.
Fixed income
They are best suited for those who value security, i.e. conservative and moderate investors. This is because their return on capital is calculated at the time you invest your money.
The best known of all is the traditional savings account. However, there are other fixed income investments that are extremely safe and have a higher profitability, such as Tesouro Direto, LCI and LCA.
Variable income
These are riskier investments, but at the same time, they offer a much more significant return.
Earnings are not estimated at the time and are therefore recommended for bold investors or for those who want to diversify their portfolio.
Among the main examples, we can mention shares and variable income funds.
Conclusion
Building a portfolio of financial assets requires analyzing many factors, such as those mentioned here.
Remember that to do well in the financial market, you need to study, dedicate yourself and always take into account your investor profile and financial goals!
