Everybody knows diversification is an essential strategy for building a successful investment portfolio. By spreading your money out across different assets and investment vehicles, you minimize the risk associated with any one investment, enabling your portfolio to weather a lot of storms. Or at least that’s the theory. For over half a century, the reality was that regular investors were only allowed to invest in publicly traded stocks and bonds, which means their ability to diversify was pretty limited. Luckily, thanks to new financial technologies and changing SEC regulations, things are finally starting to change. Today, cutting edge online investing platforms like DiversyFund are helping everyday people diversify their portfolios with alternative assets like private market real estate. And it is changing the way people plan for the future.
For decades financial advisors have been building long-term investment portfolios with a 70-30 ratio of stocks to bonds. This isn’t necessarily the best way to diversify investments. But it’s the best you can do if you are only allowed to invest in stocks and bonds. And for most of the last 60 years, that’s all regular investors were allowed to buy.
The rules were different for institutional investors and high-net-worth individuals. For the last few decades, a lot of one-percenters have been diversifying their portfolios by allocating up to 30 percent to alternative assets like private market real estate. And this makes a lot of sense. Not only does the private real estate market have less volatility than the stock market, but it also offers consistently higher returns. Adding this type of asset to your portfolio takes diversification to a whole new level.
Unfortunately, in the past, it was difficult or impossible to break huge real estate investments up into smaller pieces that regular investors could actually afford. Because SEC regulations were based on these limitations, only the rich had access to the most lucrative investment opportunities. But that is not the case anymore. Thanks to major advancements in financial technologies, including crowdfunding tech and artificial intelligence analytics, today we can break up huge investments into smaller pieces. And the SEC has updated their rules accordingly.
Now, online investing startups like DiversyFund are changing the game.
DiversyFund was created to democratize the investing landscape and close the wealth gap by giving regular people the same financial opportunities as the one-percenters. To accomplish these goals, the company’s founders created a simple online investing platform that lets anybody invest in a portfolio of diversified real estate assets.
Officially called Real Estate Investing Trusts, or REITs, these portfolios are managed by experts who follow a simple three-step strategy to make you money. First, DiversyFund acquires multifamily apartment buildings that already generate revenue, but are in need of some improvements. Second, DiversyFund renovates the buildings so that they generate increased revenues until market conditions are right for profitable liquidation. Third, when market conditions are right, DiversyFund sells its real estate assets, returns principles, and distributes the returns to investors.
Thanks to this tried-and-true strategy, DiversyFund has an excellent historical return rate of 17.5%. And because DiversyFund actually owns and operates the properties you invest in, which cuts out all the middlemen, there are absolutely no fees.
Yep, you read that right. No. Fees.
In recent years the SEC has loosened a number of regulations, theoretically opening up a number of alternative assets to regular people. However, a lot of online investment platforms still have net worth or credit requirements that make their services inaccessible to a lot of people.
When DiversyFund says their goal is to close the wealth gap, they really mean it.
With DiversyFund, if you can afford the minimum $500 investment, you are eligible to invest in private market real estate. Period.
Whether you are a total newcomer just starting to plan for your financial future, or you’re an experienced investor always on the lookout for new ways to improve your portfolio, don’t be content to play by the old rules. DiversyFund offers diversification opportunities previously only available to billionaires. Take a look and see what they can do for you.
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