Pat decided to invest a total amount of $3000 recently. This is a great start for pat to build an investment portfolio. When investing such an amount, it is important to diversify across different assets to reduce risk. Pat could consider stocks, bonds, real estate, and other alternatives.
Stocks provide growth potential
Stocks allow investors to own a share of a company and benefit from its growth. Pat could invest $1000 in some blue chip stocks that are stable and pay dividends. A mix of tech, healthcare, consumer staples stocks would provide a balanced portfolio.
Bonds give stable income
Bonds are loans issued by companies or governments that pay fixed interest. Pat could invest $1000 in short and medium term high quality corporate bonds that provide steady income for balance.
Consider real estate for tangibility
Real estate investment trusts allow investors to own shares of property portfolios like office buildings or malls. Pat could invest $500 in REITS with high occupancy and growing rents for tangible assets.
Alternatives for further diversification
Remaining $500 could go into gold or crypto currency for further diversification. Though volatile, inclusion of such alternative assets ensures pat’s portfolio is protected against market corrections.
By splitting the $3000 investment amount into different assets like stocks, bonds and alternatives, pat has built a solid foundation for his/her investment portfolio that can provide good returns with minimized risk.