A popular proverb that you shouldn’t keep all your eggs in one basket is probably the golden rule of the investment industry. No matter how promising, lucrative or safe an investment sounds, it’s probably for the best that you approach it with a certain degree of caution. Here, there are only two ways for you to protect your assets. First, you should never invest more than you’re ready to lose. Second, always diversify your investment portfolio. Here’s how you do the latter.

  • Venture capital

The reason why venture capital is such a great investment idea is due to the fact that it allows you to invest your money into perspective businesses and startups in such a volume, that the chance of failure becomes substantially less likely. Sure, this is why most venture capital companies require you to invest at least $1 million, meaning that the entry fee into this industry is a lot steeper than with some other options from this list. All in all, venture capital type of investing is a trend that’s almost as old as civilization itself, however, nowadays there are platforms to help you do this in a lot simpler manner.

  • Art

Investing in art is also an interesting concept, as well as one that could bring you an incredible profit. The problem with this concept lies in the fact that you need a skilled advisor, due to the fact that it’s quite hard for a layman to tell which art is worth investing in. Also, you might need to buy in volume and from different artists, just so that you have a higher chance of cashing in. Another thing worth considering is the fact that art has sentimental value, as well. So, a personal value that a painting or a sculpture have may make you display them in your home, even if it’s financial value isn’t that great.

  • Stocks

Stocks are probably the most iconic form of investment. This trend, however, has both downsides and advantages that you should get familiar with before investing. First of all, stocks are easy to buy and sell, especially in the digital age, which means that you won’t have to deal with a myriad of brokers. Second, they can help you fight inflation, not to mention that stock ownership quickly takes advantage of an economy in expansion. The biggest downside is the fact that the stock market is often quite volatile, meaning that you risk losing your entire investment.

  • Commodities

The best way to keep at least one part of your investment assets safe at all times is to use 10 or 20 percent of it to buy commodities, instead of keeping it all in stocks and equity. Commodities like precious metals and diamonds act differently from stocks and currencies. In moments of crisis or instability, people are more likely to turn towards buying gold, due to the fact that it gives them security. In other words, commodities market acts differently than the stock market. Moreover, you don’t have to stick to gold and silver, seeing as how buying platinum or even palladium is just as good of an option.

  • Short-term investments

The biggest problem with the majority of investments lies in the fact that you’ll immobilize that money for weeks, months and years to come. This means that these funds become temporarily inaccessible, which might turn into a major problem. Fortunately, you always have the option of finding some short-term investments, so that you can have your money back a lot sooner. Having both short- and long-term investments active will make your portfolio more versatile and more reliable.


At the very end, it’s pivotal that you understand that this is a game of odds. No amount of diversification can provide you with 100 percent reliability that you’ll grow (or even keep) the value of your assets. Still, when talking about the likelihood of success, the truth is that your investment portfolio helps you minimize the risks while increasing the likelihood of success. This may not sound perfect, but no one can dispute the effectiveness of this system.