Investment advice
While the whole team is preparing for the planned October launch, this doesn’t mean that our community should not be readying themselves as well. Thus, we will be sharing our investment advice to prepare investors for the full-fledged launch.
Please don’t mix up investment & trading advice. We know that you don’t want to trade, managers will take that matter into their own hands. We would love to provide you with all the essential tools to make a well-thought investment decision!
Strap yourselves in for the ride as during the coming months we will be talking about Sharpe and Sortino ratios, diversification, systematic risks, the psychology of investment and much more while trying to keep them short and straight to the point.
The diversification of a portfolio is one of the most popular, and nevertheless useful and beneficial principles of investment. Diversification applies to stocks, shares and currencies you own.
One of the essential principles of investing is to make sure that you diversify your portfolio’s overall volatility. It comes down to spreading your investment capital amongst several investments so that you don't rely upon a single asset for all of your gain. The diversification's main benefit is that it helps to minimise the risk of capital loss to your investment portfolio.
That’s good and all, but how exactly does it apply to the Genesis Vision platform? Well, if we’re strictly not talking about the index funds that will be added to the functionality of the platform in the future (in which case all of the investment advice would be easily applied at that point), then it currently all boils down to different markets and currencies your fund manager would use.
The usual advice is to keep your saving in multiple conventional currencies, such as EUR, USD or any other, to diversify risks. Our platform allows fund managers to trade on various markets including forex and crypto; thus managers have different account currencies.
It would be a sound move to diversify your investments into trading programs with different account currencies and markets of choice. It is quite hard to earn consistently on a bearish crypto market, while it is a bit “easier” to find a solid asset on the conventional market.
That’s it for this time, but we will be back next week with more!
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