Do you want to invest but don't have the time to watch the markets all day? Trading212 has the perfect solution – investing with a pie! When you divide your investment into slices or pies, you can choose different types of investments for each slice. This makes it easier for you to manage your time and still get the benefit of investing in stocks, indices and commodities. In this post, we will discuss how to create a pie portfolio and some of the benefits of using this type of investment strategy.
One of the great things about pie investing is that you can reinvest your dividends automatically. This means that you can continue to grow your pie without having to do any extra work. And, if one of your investments starts to underperform, you can simply sell that slice and invest in something else, if you see fit.
Another benefit of pie investing is that it allows you to have a more diversified portfolio. When you invest in a single stock, you are putting all of your eggs in one basket. But when you invest in a pie, you can choose different stocks, indices or commodities for each slice. This diversification can help reduce risk and improve returns over time.
Trading212 also allows anyone to publish their pies. Therefore, there are publicly available pies if you wanted to have a look and copy them to your account, however, be careful as these pies are coming from individuals like me. Always do your own research before investing.
Pies can also offer some great tax benefits. For example, in the UK, if you invest in a pie through an ISA or SIPP, any dividends you receive are tax-free. This is because the government wants to encourage people to save for their future.
When you have multiple pies, you can also see your gains and losses on the pies which is a nice feature.
Overall, I think pie investing is a great way to invest your money. It's easy to use and you can get started with very little money. So why not give pie investing a try? You might be surprised at how much you like it!
Side Note: The Tracker application soon will let you see your investments like Google Finance does, which is a feature I have been missing for a long time on Trading212.