In Norz Patrimoniawe know that the protection and growth of heritage are only possible if unnecessary risks are minimized and the opportunities of different markets and assets are used.
Diversification consists in distributing capital between different types of assets, economic sectors, geographical areas and management styles. The objective: Reduce exposure to adverse events that affect a single class of asset or sector.
The tangible benefits of a diversified portfolio
- Risk reduction: A diversified wallet cushions the falls of certain assets with the stability or growth of others.
- Greater stability: fluctuations soften, allowing less emotional decisions.
- Access to more opportunities: Investing in different markets or sectors allows to capture profitability in very different scenarios.
- Protection against unpredictable events: From geopolitical crisis to regulatory changes, a good diversification is a shield against the unexpected.
Is diversifying the money between several funds?
A common belief is that it is enough to have several investments in different entities or funds to be diversified. Nothing is further from reality. In many cases, The funds end up investing in them underlying or replicating very similar strategies.
In Norz Patrimonia We analyze in depth the real composition of each investment vehicle. Only in this way can a coherent and truly diversified portfolio be built, avoiding duplicities, hidden concentration and unnecessary exposure to correlated risks.
Types of diversification that we apply
From our global patrimonial advice approach, we apply different layers of diversification:
- Assets: Variable rent, fixed income, alternative assets, real estate, liquidity.
- Geographical areas: Europe, USA, emerging markets, Asia, etc.
- Foreign exchange: to protect against euro fluctuations.
- Management styles: Value, Growth, quantitative, thematic, etc.
- TEMPORARY HORIZON: Diversification according to short, medium and long term needs.
Diversify is not eliminating the risk, it is to manage it with intelligence
A portfolio without risk is barely profitable. A wallet without risk control is a watchmaking pump. The key is to find the adequate balance. How do we get it?
In Norz Patrimonia we evaluate the risk profile of each client, its financial objectives and its global patrimonial situation. From there we design custom wallets, without predetermined products, or hidden interests, or conflicts of interest. As EAF regulated by CNMVour commitment is with the customer, not with the products.
Common mistakes when diversifying (and how to avoid them)
These are some errors that we frequently see between investors that come from traditional banking:
- “Diversify” in 10 funds from the same bank: that invest in the same.
- Buy assets without a plan: isolated decisions without global vision.
- Forget the periodic review: What was balanced two years ago may not be today.
- Do not consider the fiscal impact: Each type of investment has different implications.
Is it a good time to diversify? It is always
Some investors expect “the best moment” to diversify. But waiting can be the most expensive decision. The market does not warn before turning. And a poorly positioned portfolio can suffer a lot in uncertainty stages.
Diversification is precisely the best response to uncertainty. It allows you to be prepared without predicting the future.
A diversified portfolio is an intelligent portfolio
In Norz Patrimonia we have beens helping our clients manage their heritage with a strategic vision, independent and adapted to each case.
Our diversification models are based on a thorough analysis of the assets and financial environment.