The diversity of markets offers everyone the opportunity to invest part of their money. Of course, access to certain products may be limited if you do not have sufficient funds at your disposal. However, today it is possible to invest as little as CHF 50. Products specifically designed for small investors have been developed for this purpose in the form of baskets of diversified securities. For wealthier investors, there are many opportunities. All that remains to be done is to seize those that best correspond to the aspirations or needs of each individual.

Investing in traditional assets

As a general rule, high net worth individuals have a substantial portfolio invested in the so-called ‘standard’ market. They build up a diversified portfolio, including equities, bonds and hedge funds, which they weight according to their risk tolerance or by following the standard allocations of an index such as the S&P500. At the same time, they often hold a smaller portfolio based on their own convictions. To do this, they choose individual stocks or specific sectors.

In this context, an investment adviser must be able not only to offer a wide range of customised investments to meet the specific needs of his clients, but also to provide them with in-depth guidance on the financial markets.

Investing in stone

Property plays a key role in the investment world, because it is a sector in which you can grow your capital through the appreciation of your property, whether it is for your own use or for rental. As attractive as this prospect is, however, it comes with crucial considerations, particularly when it comes to choosing how to finance your purchase (mortgage, lombard loan, or other). These options are closely linked to interest rates, which have a direct influence on the feasibility of property investment. Indeed, interest rates that are too high can sometimes restrict buying opportunities.

To maximise returns, it is also essential to plan your investment over the long term, in particular by making a judicious selection of areas that have strong potential to increase in value in the years ahead. Some investors even plan to buy properties that they intend to pass on to their successors, thereby enhancing the prospects of passing them on and maximising returns over the long term.

When it comes to property, however, we need to be wary of herd behaviour. If a geographical area suddenly becomes popular, prices can rise rapidly. So it’s vital to remain vigilant and avoid buying after a significant rise in prices. The aim here is to invest with full knowledge of the facts, while avoiding excessive costs.

Investing in your passion

The financial markets are not the only way to diversify your investments. You can also invest in less traditional assets such as works of art and jewellery. This is known as passion-driven investing. Wealthy investors can also fulfil their dreams by creating collections based, for example, on paintings or sculptures by famous artists. This is a growing trend. More and more investors are trying to unearth rare pieces. Others are broadening their field of investigation by focusing on less conventional objects, such as antique musical instruments, precious stones, pottery, porcelain or even 18th-century objects. Picasso’s pottery, which is still relatively affordable today, is a good example of this. Because of their rarity, fragility and the care required to preserve them, this type of object is likely to appreciate considerably in the years to come.

But beware! It’s not always easy to make the right choices in this area. Investing without specialist advice can be dangerous. In fact, consulting an expert can greatly improve the chances of making informed and lucrative investments in works of art and jewellery. These fields require a certain amount of expertise to assess the value and rarity of the assets for sale.

Investing in a project

You can also boost returns by exploring more daring investments. We’re talking here about investing in high-risk projects, such as start-ups, technological breakthroughs, medical breakthroughs or innovative ideas.

The key to this type of investment lies in patience, as it is difficult to predict how the process will evolve or to anticipate the success of an idea. Here too, advice and knowledge of the sectors concerned are vital. While wealthy individuals are often approached for investments of this nature, it is essential to entrust the task of due diligence to their project advisor. Without this work, the risk of the investment will increase proportionately. Finding a promising project can be complex, but discovering a nugget can generate considerable gains.

Diversification

The many possibilities offered by the market all have the potential to generate returns. However, only well-considered choices will unlock the potential of your investment. With this in mind, diversification is a fundamental component of any investment strategy. In effect, it will be a bulwark guaranteeing the security of the funds invested. The judicious spreading of investments across different sectors and asset classes helps to mitigate the risks inherent in an investment and optimise its return opportunities. In short, prudence and diversification remain the pillars of a balanced and sustainable approach to investment opportunities. And this is as true for high net worth individuals as it is for less wealthy investors.