Investment portfolio: What it is and what are the benefits of hiring an advisory service

by | Jun 9, 2021 | News & Blog

In the face of the pandemic, we are living in uncertain times and many businessmen and shareholders have been forced to withdraw their money from the investment markets. That is why it is important to have the guidance of investment specialists to help you define your profile as an investor.

The creation of an investment portfolio will depend on many aspects, among them a good management of your finances, finding investment instruments that respond to your interests and investigating the investment options that are available in the market.

So, how do you start this path as an investor? Do not worry! In this article we will explain what an investment portfolio is and what are the benefits of hiring an expert advisory service.

What is an investment portfolio?

It is the set of assets made up of investments by a person or a company; this can include investments in equities, fixed income and real estate. Portfolios are necessary to diversify the risks that could be generated by investments.

In times of economic crisis or instability there are those who decide to withdraw their money, while there are others who wait for the situation to return to normal and the investment to generate profitability gradually.

To start an investment portfolio you need to get advice from specialists who can help you invest your money efficiently. Here are some of the benefits of having a financial advisor:

  1. Management of basic financial concepts

In order to create your portfolio, it is important to start with a financial education so that you can make the right decisions and know what your interests are. A financial advisor will help you know the difference between financial services, accounting services or legal services.

In addition, the advisor will provide you with a diagnosis and will work with you on a strategic plan for the short, medium or long term.

  1. Definition of a personalized plan

Your financial advisor will help you create a personalized plan according to your circumstances and financial goals. If, for example, your dream is to retire with enough money to travel for 4 months of the year, your financial advisor will help you transform this dream into a financial goal and make it a reality.

Furthermore, as your life evolves, your plans will change. For example, you may think you want to retire in 15 years, but suddenly decide you want to retire in 10 years. Therefore, your financial advisor will help you adjust your financial plan so that you can achieve it.

  1. Assessment of your financial status

It is necessary to evaluate your current financial situation before starting your investment portfolio. This includes evaluating your current income, investments, the impact of taxes, insurance coverage, among others. This way you will get a recommendation of what to do based on your real situation.

  1. Share diversification

One of the main keys of any investment portfolio, especially the one designed for the long term, is to maintain a balance in the different shares purchased by the person or the company. For this reason, it is not advisable to have shares in the same place, in order to reduce the risk of loss. Your financial advisor will help you choose what is most suitable for you.

Investments are classified as follows:

  • Assets: it is the combination of fixed and variable income shares.
  • Sectors: refers to the investment in securities of organizations in various industries.
  • Geographic zones: it is the investment in companies according to their location; these can be national, multinational or international.
  • Currencies: this refers to the purchase of shares in companies that use different currencies to carry out their transactions: dollars, euros, pesos, bitcoins, etc.


  1. Constant savings

The most common financial concerns are:

  • Problems saving money for short and long term goals.
  • Rising living costs.
  • Unforeseen expenses.

Having a financial advisor will encourage you to save more money and motivate you to meet your goals.

Remember that money can grow sustainably over time through investment, and once you get into the habit of having a budget and start saving, it will be much easier in the future and you will be able to increase your ability to save even more.

  1. Efficient investments

With a financial advisor you will be able to make the pertinent and precise adjustments to improve your investment portfolio. This way, you will increase the profitability of your assets and reduce risks. Your advisor is capable of maximizing your profits or minimizing your losses by applying economic solutions that you may not have considered.

As you may have already realized, starting to manage your investment portfolio is a process that requires the advice and support of an investment specialist to help you manage your money more efficiently.

Do you need advice and different options to know which are the best investment instruments that best suit you according to your capital? At Trusted Advisors we can help you and we are committed to providing with a comprehensive and personalized service so you can achieve your goals.

Request an advisory now.