The Importance of Asset Diversification
Updated: Feb 10
Everyone should have heard of the saying, ‘Don’t put all your eggs into one basket, the essence of this saying is to remind everyone of risk management and not to focus all their resources in one area as they could lose everything. This rule is especially true when you are managing your own wealth. If you want to effectively control and minimise your risk you cannot place all your funds into one financial product. In the financial industry, this is called asset diversification. Asset diversification is to diversify your resources into various types of asset investments. By having a different variety of asset types in your portfolio, such as low-yield and low risk, high-yield and high-risk projects, you can reduce your investment risk and increase the rate of return of your overall wealth.
With the continuous development of the financial industry, asset allocation and diversification have become increasingly important. Whether it’s for high-net-worth investors or just for the ordinary working class, both need to choose suitable investment portfolios that best match their own situation and risk tolerance.
Most traditional Australians mainly focus their investments in the real estate, local stocks, and cash sectors. However, the Australian interest rate is now as low as 0.1% which means that the return on cash savings will be very low, while the real estate industry requires investments of large amounts. There is also an expected significant cool-down in the Australian housing market in 2022 as economists of Australia’s largest bank have forecasted that in 2023 property prices could drop as much as 10% and interest rates to rise as much as 1.25%. Therefore, during this pandemic, both high-net-worth investors, as well as ordinary working-class people, have begun allocating their resources into different asset classes.
How we can help?
Introducing the KBRZ lending fund, this registered high-quality Australian asset with an annualised return rate of 8% and a low to medium risk level, offers a stable and guaranteed income. This lending fund requires a minimum investment amount of $500,000 and an investment period of 12 months with a management fee of 1%, however, you can join and opt-out any time with no application or exit fee.
Our KBRZ lending fund offers:
Financial security and stability: Our KBRZ lending fund is managed by a professional and experienced team, so you can invest with peace of mind that it will bring stable returns after investment.
Higher rates of return than bank interest rates: Since bank interest rates cannot exceed the inflation level, then for wealth to increase rather than depreciate the rate of return on wealth management products must be higher than the inflation rate.
High liquidity: KBRZ lending fund has a flexible opt-out policy with no withdrawal fee. This fund will not hold up investors’ resources due to a long investment period and interrupt investors’ investments in other areas.
Other than our own KBRZ LENDING FUND, we also offer an independently approved commercial loan product as well as a residential loan product, being K-DIRECT and K-LOAN respectively. KBRZ professionally provides a variety of loans catered to your circumstances including Australian non-bank loans, bridging loans, short-term loans, overseas loans, construction and development loans, and secondary mortgage loan services. Our advantages are low-interest rates, exceptional service, flexibility, and time efficiency.