Taking a Minimalist Approach to Investing
Living like a minimalist has come to mean a refusal of modern technology and a general rejection of capitalism’s consumer nature. For anyone not looking to ditch their smart phone or second vehicles, the idea seems as far removed as anything. There is however a middle-line to be drawn here. A minimalist strategy of investing is now emerging as the way to prosperity.
Many high-profile investors regard balanced funds as a general waste of time. Their high fluctuation and low yield have generally detracted high stake players from participating. Nevertheless, for your average investor, balanced funds offer long-term returns, something that can prove to be more than a challenge when investing in bond funds and/or individual stocks.
While balanced funds are considered best for novice investors with modest portfolios, they are hugely under-rated for larger portfolios. There is no good reason to invest $100,000 much differently than $10,000 – with one exception. Investors with significantly more money should generally expect to pay lower percentage transaction fees. Since most investors – novice or expert, wealthy or not – are guilty of investor implementing poor investment strategies, a reasonably-priced diversified balanced fund can be an investor’s only holding well into six-figure dollar amounts with pleasing results.
Investing in emerging countries and prosperous infrastructures may appear exciting, yet for the average investor, such strategies only become options after institutional investors have already made the first wave of profit. For smaller investors, broadly-based funds seem to be the likely alternative. Rather than investing into the debt-addled Europe and the U.S. or the emerging nations, consider an option like Dynamic Global Value. Decisions like these will aid in keeping one’s portfolio lean and easy to analyze, as well as provide a surety of low disappointment.
Keeping a close eye and a controlling hand on the expenses and fees one encounters in investments is also crucial.
Investing into assets that will bring you closer to your financial aims and goals will also help you keep a balanced book. Rather than investing into anything that seems profitable in the long- or short-term, consider if the investment strategy is something you are willing to commit to inspecting over time. This will also help you from investing into stale economies.
A simpler, more reserved and well-though-out portfolio will bolster your investment savvy and yield better results in the long run.
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