The Fundamentals of Diversifying Your Portfolio

Mar 29, 2015 by

The Fundamentals of Diversifying Your Portfolio

A diversified portfolio is essential to protecting your investments. It’s a proactive strategy that you can use to determine investment correlations and build an effective strategy for managing future investments.

 

Understanding how to create a diverse portfolio ensures that you maximize your investment returns while having the peace of mind to move through any market highs or lows.

 

Why Diversify

 

No matter what transparency of information may be available to you, it’s simply not possible to determine how the markets will react.

 

A diversified portfolio can never provide a guarantee that you won’t incur any losses. But it does maintain a level of risk that protects your money over time. This includes careful consideration around your volatility tolerance and time horizon.

 

A diversified portfolio increases your returns for a given risk level despite what might occur to some of your investments.

 

A company like Nutmeg helps investors diversify the portfolios of investors by distributing funds throughout a range of assets and locations. This prevents the common mistake of investing in a few companies, which increases your risk.

 

Diversification works because it is rooted in the correlation concept of investing. This lets investors determine the relationships between two or more investments. Investments that increase (or decrease) together are said to have a high correlation.

 

Those with a low correlation are more diverse in their responses to external market conditions and are ideal for including in your portfolio.

 

Because they move in opposite directions, low-correlation investments in your portfolio increase your returns at a given risk level or reduce your risk altogether.

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The first step to diversifying your portfolio is to identify those investments with tendencies to move in opposite directions.

 

How You Can Diversify

 

It’s important to spread your investments. You should avoid putting all of your money into a particular sector or stock. Consider those companies that you trust and have historically proven reliable and stable.

 

What products or services do you use in your own daily life? These are good places to look for healthy investments to include in your portfolio.

 

You should also avoid investing only one lump sum. Consider a regular and consistent investing schedule. This is done using dollar-cost averaging and lets you avoid some of the most sudden changes in the market.

 

When the price of a share drops, an investment’s value is at the mercy of the changes in that given company.

 

Using a service like Nutmeg reduces the risks by placing investors’ money into index funds and a variety of company shares. Bonds and stocks are also used to lower the risk even further.

 

Know the Cost of Investing

 

There are a number of fees that can accumulate in investing. Less-informed investors spend on unnecessary costs if they’re not careful.

 

Firms vary in their approaches to fees. Some may charge a fee for each transaction while another may charge you a fee once per month. In either case, you need to know what you are getting in exchange for the fees you’re paying.

 

You can find professional investment services like Nutmeg to help you diversify your portfolio and get the most out of your investments at minimal cost.

 

Investors and financial planners understand the importance of having a diversified portfolio. A strong market increases your returns dramatically—but for how long?

 

Having multiple investments with low correlation allows you to maximize your returns and minimize the risk of a sudden economic change. You’ll have more security to weather the tides of volatile markets and grow your assets over time.

 

For more information on how to build a strategy for a diverse portfolio, visit us on our website and let us answer your questions.

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A Guide to Your Weekend in Calgary

Mar 25, 2015 by

A Guide to Your Weekend in Calgary

If you’re looking for a great weekend trip, Calgary is your answer, no matter what type of traveler you are. This Gateway to the Rockies city is filled with art, culture, shopping, physical activities, and more. The hardest part is choosing what to do in only two days. We have come up with the essential activities to do during your weekend in this beautiful city. Check out our top five activities below.

Canada Olympic Park

This 1988 winter Olympic location is open for recreation and tourists alike. Wannabe Olympians are able to live their dreams out as they as the ski down these world-class slopes.  Depending on the time of year, adrenaline junkies can zip down the massive zip line while sports enthusiasts can check out the hall of fame. This park is dominated by the many options for physical activities, from hiking, biking, ice skating and more.

Edworthy Park

Just a short drive from downtown, where the best hotels in Calgary are located, is Edworth Park. This urban oasis is the perfect picnic spot for singles, couples, or families alike. The summer sun will kiss your skin as you sit on a bench overlooking the Bow River. This park is part of the Calgary Pathway network, which has over 125 km worth of trails. Fitness travelers will find a quick morning run through this area the perfect way to wake up.

Calgary Tower

Eat your heart out Seattle! The view from this even taller that the Space Needle free-standing tower will leave you speechless. The fearless traveler can take a walk across the glass floored observation deck and get a bird’s eye view of the city. Foodie travelers can grab a bite to eat in the revolving restaurant. If you can catch a cocktail at sunset, you won’t regret it! No matter what kind of traveler you are, the view from the top of downtown from Calgary Tower is a sight you can’t miss.

Creative Kids Museum

Families looking for a weekend away can’t miss all the fun and excitement of the Creative Kids museum. Tactile learners will be in heaven with all hands on entertainment available in the large building. This exclusively arts related museum will allow kids to sing their lungs out at the music exhibits, quote soliloquies like Shakespeare in the theater section and explore in the visual arts department too. There is no better way to sneak in an educational visit for your kids than a visit to this museum.

Mountain Adventures

It doesn’t matter what season it may be, the mountains surrounding Calgary have something to keep all travelers occupied. There are four ski slopes within a moderate driving distance from the city. All winter activities, from snowshoeing to skiing to sledding are available which means the family can find something fun to do. Summer hikes in the mountains will offer you stunning vistas of the Canadian Rockies. Even pets can run around and exert some extra energy while playing in the beautiful nature.

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An Australian adventure

Mar 20, 2015 by

An Australian adventure

Most people dream of visiting Down Under at some point in their lives. Whether you want to visit for a three or four week holiday, touring around or staying in one place, or whether you want to head over for a working holiday, maybe taking a year out, there’s no denying that Australia is on most people’s bucket lists.

This is a huge country, and it’s impossible to see everything, so it’s important to narrow it down to what you do want to see, perhaps picking one area or region, and exploring it to the max. Australia has some amazing road trip routes, as well as really scenic rail journeys, so this could be a good way to see more of the country and its ever changing landscapes.

Long haul flying comes into the equation here however, and it’s a seriously long flight at that. The destination will be more than worth it, so don’t let the journey put you off, but it’s always a good idea to look at ways to make your flight easier on the tiredness levels. Starting off on a fresh foundation is the best plan, and I find that staying overnight at the airport is the best way to do this. I’ve used many of the Heathrow Airport hotels for this exact reason, and I found them not only great value for money, but also fantastic for cutting out travel tiredness and stress. Check out AirportHotels.com for great value deals from your departure airport.

Australian Adventure

Most people fly to Sydney to spend the first few days of their Australian adventure, but this isn’t set in stone, and it really does depend on what you want to see. Of course, Sydney has the huge Opera House, the Harbour Bridge, and those amazing views, as well as the laid-back surfer vibe the country is famous for. On the other hand, further up the coast you have Brisbane, right next door to the famous Gold Coast, with more surfing fun to be had, and not too far away from the spectacular Great Barrier Reef and the idyllic Whitsunday Islands.

On the other side of the equation we have the capital, Canberra. Many people falsely believe that Sydney is the capital, but no, it’s Canberra! Here you’ll find city life and many government buildings to explore, plus some beautiful gardens. You could combine visits to Sydney, Melbourne, and Canberra, taking into account the Great Ocean Road and its truly spectacular views of the coastline.

There’s plenty of food for thought, and we haven’t even touch on the inland, such as Uluru, the Red Centre, the rainforests, the beautiful west coast, and the sparsely inhabited north of the country.

Australia is a land of contrasts, and one that has to be seen to believed.

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A Guide to Posting Parcels to Europe

Mar 19, 2015 by

A Guide to Posting Parcels to Europe

It can be incredibly freeing to see the sights of Europe armed with just a backpack. That said, sometimes packing light can be less than helpful. You may find yourself in a situation – looking for a job, better healthcare, or unseasonable weather, when leaving that one thing at home becomes a regret. But don’t despair! TNT Direct makes it easy to send parcels worldwide quickly, with 2-3 day international delivery options available. Here’s a quick guide to the dos and don’ts of delivery.

Food

Ensure your sender thoroughly researches the customs laws of the country they are sending foodstuffs to. Expiration dates are a key factor to consider when posting food, and anything that will expire during transit is a no-no. Meat, dairy products, and fresh fruit and vegetables should never be posted; though sealed packaged goods such as jams and spreads, snacks, biscuits, cereals, and cakes should have at least 6 months until the expiration date and remain in their original packaging.

Documents

Your first priority when replacing a missing document should the deadline by which you need it – unexpected requests such as paper driving licenses, birth certificates, and qualification certificates are all necessary for visa and job applications. If someone is posting a document to you, they should send it in a cardboard-lined envelope in order to not bend the paper. High-importance documents should also be posted with a signed-for or tracked delivery, as it is difficult to recover lost items without several forms of identification.

Medicines

Medicines, for good reason, are especially regulated in shipping. Your first port of call should be to obtain the prescription and medicine from a doctor local to you. However, if your particular medicine is not available in your country, make sure that the person who is sending your medicine understands the Medicine Exportation Licensing laws – this essentially declares the authenticity of the pharmaceutical products to customs so they are not mistaken for anything illegal.

Gifts

You’ll be pleased to hear that sending gifts is fairly simple! Just remind your sender to complete a customs declaration form on the packaging, in order to minimise delays and additional costs. Expensive gifts are best delivered from shop to recipient, as VAT must be paid on anything over the value of £40, and duty on parcels worth more than £135 outside of the EU.

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Title: Bangkok Without Breaking the Bank

Mar 19, 2015 by

Title: Bangkok Without Breaking the Bank

Every traveler can have an adventurous time in Bangkok, even those on a budget. The swanky high-rise bars aren’t the only place to get a delicious meal and snazzy drink. On the flip side, budget doesn’t mean eating second-hand food and sharing a room with 20 other people. Take a look at these tip on how to have a good time in Bangkok, on a budget, without having to sleep next to cockroaches.

Cheap Accommodation

There are different levels of ‘cheap’ and none of ours involve dirty rooms or 20+ smelly roommates. Khao San Road is the traditional backpacker’s area that many hostels are located. A less known area, just as cheap but that offers better standards of living, is Soi Rambuttri. This road runs just behind Khao San and is our pick for the best and cheapest hotels in Bangkok.

Tasty Affordable Food

Your mantra should be ‘street food’ if you’re on a budget, anywhere in the world. Bangkok is no exception. The best part about this wonderful city is that their street food is some of the best in the world. When you bite into a succulent street gyro, you’ll be wondering why you’re only paying two dollars for this high-class tasting meal. The fresh fruit shakes that cost $5-$8 in a fine dining restaurant will cost you a little more than a dollar from a street vendor.

After a few days of eating like a king, but on a pauper’s budget, you might reconsider getting on your plane back home.

Budget Activities

If adventure is your game, Rod Fai Market is where you should head for some budget entertainment. This open air market is the place to get the cheapest goods, second hand gadgets and vintage souvenirs. Adrenaline seeking travelers can head to a Muy Thai Boxing match. Depending on where you go, you can find matches that are free to watch, like the MBK Shopping Centre on Wednesday nights. Try not to get too caught up in the excitement and jump in the ring yourself.

Culture seekers can head to many of the free Wat’s and temples. The serenity that spills over your body as you walk through a Bangkok Wat will keep you coming back to this magical city again and again.

Cheap Transportation

Getting around Bangkok can be a bit tricky, especially if you’re staying around the Khao San area. Traffic is often heavily congested. If you’re brave enough, jump on the back of a moto taxi and you’ll get around a lot faster. The best part about a moto taxi is that you’ll spend a bit less than a traditional transport fee. If you are traveling with a group, flag down a tuk-tuk driver and don’t forget to hold on. These zippy, non-traditional vehicles will speed you to your destination, mostly in one piece.

If you are heading outside of central Bangkok, the railway system is a good and cheap option. Just remember they shut down in the middle of the night.

This article is part of the #hipmunklove project. I would never recommend a site I didn’t use myself. I recently booked a trip to India and after looking at several providers, they were actually the cheapest.

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