Investing has always been a subjective subject, as it depends on a plethora of internal and external factors – constantly changing. However, one aspect that most wealth managers always align themselves with – regardless of the situation – is that investors need to diversify their assets.
Diversifying between different asset classes and geographies has never been easier, thanks to the different investment platforms that have multiplied in the region and around the world. This not only cushions the fall of a sudden drop in an asset’s value or the onset of a pandemic, but also ensures that you have enough cash to build on when needed.
“In the current market conditions, it is of paramount importance that any portfolio is spread over several asset classes,” explains Dubai-based AIX Investment Group.
“In doing so, it is just as important to maintain the liquidity of part of your portfolio. We recommend that you allocate a portion of your portfolio to a secure fixed income product that secures a portion of your portfolio with regular cash flow, while retaining a more liquid portion of working capital, than a client can always. reach on a rainy day.
AIX Investment Group recommends that seasoned investors follow a 40-40-20 approach:
• 40 percent of the portfolio is allocated to a fixed income product, generating stable cash flow with almost no risk involved.
• 40 percent is distributed in a variable income product, which is completely liquid with medium risk involved, accelerating the growth of the fund at a rate higher than the fixed income allocation.
• 20 percent is allocated to a high risk product, with a calculated risk approach, which compensates for the slower and more stable returns of the fixed income product.
“While return on investment remains a key factor in all investment decisions, we have noticed a dramatic shift in the focus of returns towards the security and sustainability of income streams,” says Fadi Dabbagh, advisor to the board of administration of AIX Investment Group.
“As such, it is only natural that investment sentiment has shifted to the more risk averse side, and our investors are counting on us to advise and advise them through these changes.”
AIX Investment Group, which was established in Europe 13 years ago, has generated passive income for its clients ranging from 14% to 40% per year. Click here to find out more.