Efficient Investment Options to Expand Your Portfolio

As an investor, your portfolio can greatly increase your chances of landing future deals and securing funds. However, expanding it can be a challenge, especially if you’re essentially starting from zero. However, it’s completely understandable to have a small portfolio considering how expensive it is to invest in businesses and real estate. So to help you out, we’ve put together a couple of ways that you can efficiently boost your portfolio.

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Investing in franchises

Investing in a franchise is one of the safer ways to expand your portfolio as long as you’re working with an established brand. Franchising is all about relationships with an existing brand and it helps to have good connections in the industry. However, if you’re able to land a franchising deal with a relatively small portfolio, it can open you up to many unique investment opportunities in the near future. This is definitely one of the most efficient investments to make if you want to expand your portfolio. It can teach you a lot of unique aspects of investing and it’ll give you a profitable business venture for income to fund future investments.

Investing in the stock market

While considerably more technical than the other options in this article, the stock market is a fantastic way to build up your investment portfolio. However, you should keep in mind that this is extremely different from other things in investments and relies heavily on your ability to stay up-to-date with current news cycles and industry know-how. While some may consider it gambling, the reality is that a smart investor knows how to invest with favorable odds and cut their losses when needed.

Investing in efficient properties

Efficient properties are any real estate investments that are aimed at maximising income. For instance, HMOs (houses in multiple occupations) are houses that are rented by five or more tenants that live under the same household. They share certain facilities but are often given their own private rooms. They are not considered family and each pays their share of the utilities and their own rent. An HMO mortgage can be a step in the right direction for any budding investor and it’s something that we highly recommend if you’re looking to get into the real estate market. Another efficient real estate investment is a mixed-use property that combines commercial and residential services.

Investing in businesses

Lastly, we can't forget about investing in businesses. This is an incredibly vague term as it can mean many different things. However, the idea is that you invest in many smaller businesses with stable ideas that can generate profit. As you work your way up, you’ll learn about different kinds of businesses and markets. You’ll also learn to profit from failures and when to cut losses in specific situations. As you build experience and a larger portfolio, you’ll be given more opportunities to work at higher positions in various industries. This is a great way to expand your portfolio and is highly recommended for people who are just getting started.