If you were to ask anyone who works for Freedom Debt Relief, they would likely tell you that one of the most important principles in creating a balanced financial portfolio is diversification.
In order to make sure that your portfolio is protected from the risks associated with certain future events, it is a good idea to have as many different kinds of assets as is feasibly possible.
Over the past few years, one of the types of assets that has become incredibly popular on Wall Street and elsewhere has been equity in fintech. Fintech—which is a portmanteau for financial technology—is essentially an industry that seeks to use new technology to replace (or at least compete with) the functions of more traditional financial institutions.
Generally, there are two different kinds of financial goals: security and growth. While Freedom Debt Relief may be able to help you re-establish the financial security you need, allowing your financial portfolio to grow will require action in advance.
Why is the fintech industry experiencing such large rates of growth?
There are several different reasons the fintech industry has been experiencing such an intense growth rate over the past few years.
The industry is one that seems to be creating genuine—and not merely illusory—value, and because of this, it seems many of the developments in the fintech industry are sincerely here to stay.
Changes in technology have made the fintech industry increasingly viable. As smartphones have revolutionized the way people live their lives, fintech companies have sought to make financial decision making more accessible and efficient than ever before.
Being able to control your financial accounts from almost anywhere in the world is an extremely valuable option to have.
Freedom Debt Relief has noticed a number of other competitive advantages presented by the fintech industry as well.
As improvements in technology have enabled the automation of processes across the board, the overall costs of financial transactions have been able to substantially decrease. Because of this, fintech companies are generally recognized as being able to do more for less.
How can investing in fintech help balance my financial portfolio?
You may not want to invest all of your money in the fintech industry. After all, as Freedom Debt Relief has observed, if you invest all of your money in anything, the overall risk of your portfolio is sure to decrease.
But if you are hoping to balance your portfolio by investing in high-growth forms of equity outside of the traditional DOW or S&P stocks, the fintech industry is likely a very viable option.
Because the value that is being created by this industry appears to be genuine, it seems that as a whole, the average dollar invested in fintech today will likely be worth substantially more a year from.
Investing in the fintech industry, of course, is not without risks. While it is not a financial investment company, Freedom Debt Relief will consistently advise you to investigate the pros and cons of any potential investment before engaging since that is just a best practice.
Because many of the companies in the industry are start-ups, the rate of those who “make it” is relatively low. But for those who do “make it”, the return on investment for shareholders can be incredibly high.
Balancing a financial portfolio requires thinking about security, growth, and diversity.
Financial security comes from investing in things that are very unlikely to lose their value over time. Financial growth comes from investing in things that are undervalued in the present and will be worth more in the future.
Though investing in fintech will not necessarily make you a millionaire, it presents a unique opportunity for growth that may be exactly what you need.