With global investments shrinking and returns shaken by the dynamics such as the health crisis due to COVID-19 among other factors, investors and those planning to lock in their retirement benefits are dived between the hard surface and the rock. There are many investment options that you can pursue but the risks the rising risks associated with some of the investment areas are causing jitters and worry among many people. Fortunately, investment analysts and advisors are available to help you figure out the best way to design an optimal strategy capable of maximizing your investment portfolio for better returns.

Go for an Equity-based Investment

For example, it remains clear that equity is preferred over bonds since the former is the best option for people wishing to preserve and increase their purchasing power. For the last century adjustment for inflation notwithstanding, equities have consistently delivered more than 7 percent real returns for stocks of large companies and 9% for small-company stocks, which are double and triple the potential returns for bonds.

But which way should you go? Experts recommend combining a local equity index fund and an international index fund. Most equity investors make a mistake of holding more securities than they really should to reach a diversified portfolio investment. By partnering with the right financial and investment expert, you will be able to model your portfolios such that you minimize the risks and maximize possible returns. What many people do is they rely on some portfolio modeling software to guide their investment decisions. The import of this has been that such portfolios have consistently underperformed, leading to either low returns or no returns at all.

This is the reason you need professional portfolio managers who are well-grounded on matters of investment. They have the right skills to outperform the market and enjoy premium returns on all your investment options. According to data pulled by experts, between 53-84 percent of returns earned by public limited companies in the U.S came is attributed to firms that owned index funds. Therefore, when it comes to constructing a fully diversified equity portfolio, investment advisors say all that investors need is to get hold of two-pronged equity index funds if the historical data is anything to go by.

Keep Your Investment Portfolio Mix Simple

Superior investment returns subscription analysts suggest that keeping it simple reduces the cost, risks, and increases the chances of a portfolio performing better. When planning to diversify a portfolio, it is advisable not to use far too many varied classes of assets. In short, investors should avoid complex investments, especially when looking to venture into equity investments. Keeping it simple is the best way to go about your investment portfolio.

Remain invested

One of the investment principles says you need to remain invested so long as the investment approach chosen reflects your investment objectives and risk profile. Historical data shows that the investment market has remained faithful and true to those who remain glued to the market. This implies that the longer you hold unto an investment portfolio the more likely you stand to gain from it. An analysis of the UK share market indicates that an investor who holds an investment for one year would suffer a loss of up to 20 percent in cases of market dips, but the one who would hold it for 10 or more years would lose just 2 percent of the instances. Therefore, Fidelity International, a research entity concluded that taking a longer investment term works pretty well for investors.

For a superior investment returns subscription, sign up with a reputable investment firm to help you model the best strategy that fits your short-term and long-term investment objectives.