Anyone looking to invest in the stock market is faced with many challenges. While I am in no way an experienced trader or even close to being what people often label a day trader, I do know a thing or two about the challenges of investing. I have many of the basic principles of investing under my belt.
To be honest, I don’t stay up to date on the recent trends or news on individual companies, so it is difficult to follow for me to follow individual stocks. While buying individual stocks may provide investors the ability to beat the indexes, it also comes with more risk. One of the many challenges that I face is diversifying my portfolio with buying individual stocks. I simply don’t keep up with the recent news, nor do I have enough money to properly diversify by investing in individual stocks. This is why mutual funds and ETF’s make up most of my retirement funds.
Motif Investing – What is it and How Does it Help Investors?
That is why I was really interested to learn about Motif Investing. It is a company that allows investors to compile a portfolio of different stocks focused around one investing idea. For example, I have often thought that great businesses are those who prey on consumers who don’t care about how much they are investing. The type of businesses that I have in mind include those within the tourist industry, pet accessories, etc. These industries offer, in my opinion, offer a lot of potential. Yet, it can be quite risky to invest in individual stocks in these markets.
That’s where Motif Investing comes in. A motif that is featured in their catalog is the Pet Passion Motif. This fits my category of a popular industry that takes advantage of consumers who are willing to pay a fortune. This motif allows investors to buy into these industries or ideas in a similar way to ETF’s. As the review written at Forbes put it, it offers “wide-ranging – and thus, low risk – investments.” While I may like the idea of investing in a company within this area, before Motif Investing, I wouldn’t see myself actually doing it. I see this field as a little more volatile than others. Investing in these ideas or industries, instead of individual stocks, has become that much safer and easier with motif investing.
If you don’t want to invest your money in an industry that is as volatile as the pet passion motif, you can also invest in something like the Utility Bills Motif. This may offer the security and long-term outlook that many investors are looking for. As I have already hinted at, what I like best about motif is the inherent diversification. It allows investors who may not have a lot of money (like me or other young adults) the ability to spread out their money among several similar stocks.
To put it simply, Motif Investing seems to offer another unique vehicle with which to invest. In my opinion, the more tools and entry points into the market that provides more security for investors, the better. While it may not be the answer for everyone, I have been pleasantly surprised by looking at the Motif investing strategy that I will consider this going forward. It certainly offers investors a simple way to diversify within emerging industries or ideas, which is important for the young adult generation.
This article was sponsored by Motif investing, an innovative new online investing platform that empowers individuals to easily invest in ideas they see every day. A motif is a carefully researched and balanced grouping of up to 30 stocks that combine to give investors diverse exposure to a single big idea.