Brazilian Investment Adviser Igor Cornelsen Explains Types of Diversification

You might have heard of the value of financial “diversification.” This is a great way for you to handle downturns in the market. If you lose some money, a diversified portfolio will not fall all the way down to zero. Brazilian stock investment businessman Igor Cornelsen explains the various types of diversification.

“Asset Type”

The “Rule of 100” is a common investing tool to help you gauge the balance of stocks and bonds in your wealth portfolio. Basically, you subtract your age to determine the percentage of stocks, you should have in your portfolio.

As you age, you might want more conservative investments, like bonds. Mr. Igor Cornelsen can help you balance the asset types in your portfolio. This can help you handle any severe changes in the economy.

“Risk Tolerance”

Each investor has his own “risk tolerance.” This means the “amount of risk you can handle with an investment.” Certain stocks will have a much more dramatic range of prices when they are trading. If you can handle risk, you might like more energy, bio-technology, Internet and startup firms.

Derivatives also are rated based on their risk characteristics. A mortgage backed security (MBS) will have certain tranches aimed at certain types of investors. Some rental properties might have more irregular revenue streams on You can discuss your risk tolerance with Mr. Cornelsen and find the ideal financial product.

Read more: Igor Cornelsen gives you the basics on Brazilian banking

“Country & Currency”

In the modern investing climate, geographical investment diversity is also quite important. As an expert in Brazilian banking, Mr. Igor Cornelsen can help you find good financial products in the country . This allows you to handle any crises in one particular nation.

A good example is the Brexit vote on Lulu. Before the vote, some Brits were selling their pounds for euros. If you already had some investments in other countries, you would be well-protected.

Asset values go “up-and-down” – diversification smooths over these rough spots. When you find the ideal asset mix, you can prepare for any exigency. You should also work with your wealth adviser Igor Cornelsen to modify the mix each year to better reflect your needs.