Animated Excel infographic of financial stability portfolio

Dynamic charts in Excel bring any infographic to life with interactive animation, suitable for any industry. This time, the template focuses on private investment in personal finances. The goal of the data visualization is to motivate users toward achieving financial stability through a simple four-asset portfolio strategy.

Who Needs This Infographic Template for a Portfolio Presentation in Excel?

Animated infographics not only motivate and persuade but also present solutions from different perspectives. Who are the users of such infographics, and how do they benefit? Let's consider a specific example.

The strategy for a reliable portfolio aimed at financial stability consists of four basic asset types:

Real estate.
Precious metals.
Securities.
Investments in business.

The value of this portfolio grows faster than inflation. The primary goal of an investor is not just to earn, but to preserve capital. With this portfolio, you can also grow your capital. This diversification method is recommended by renowned investors such as:

Ray Dalio – founder of the hedge fund Bridgewater Associates;
Robert Kiyosaki – American investor, entrepreneur, and author of popular books on investing.

This investment portfolio is highly balanced. But how do you properly distribute capital across the four directions? For beginner investors, the portfolio's high reliability allows for equal capital distribution across all 4 assets (25% each – this can be shown on an infographic using animation). On the other hand, a portfolio combining these investment categories requires specific knowledge.

Basic Lessons in Investing

The portfolio contains traditional investment objects. Financial history shows that stable companies, which have existed on the market for 200 years or more, generally operate in mundane business sectors. These companies fulfill essential human needs without which life is impossible:

Food.
Clothing.
Housing.
Healthcare.
Education.
Culture.
Work and self-fulfillment.

This is the minimum required by every person, and these sectors will always be in demand. Therefore, when choosing stocks or business areas for conservative investing, this fact should be considered.

It is also important to review the ranking of economic sectors globally:

Information technology.
Banking and financial sector.
Energy sector.
Engineering.
Healthcare and pharmaceuticals.
Construction and real estate.
Chemical industry.
Transportation and logistics.
Agriculture and farming.
Light industry and textiles.
Media, culture, and entertainment.

For an investor, it is crucial to view the world from the correct altitude to see the big picture while remaining discerning. Among investors, the concept of a "Helicopter Look" is very popular.

Such statistical data is beneficial not only for investors but also for data visualization developers. Financial and economic statistics are an excellent source of inspiration for creating new animated infographics in future examples.

Advantages of a Balanced Investment Portfolio for Financial Stability

Let's start by examining the pros and cons of such an approach to conservative investing.

Strengths of the Portfolio

Risk Diversification. Different asset classes in the portfolio respond differently to economic changes. If one asset type decreases in value, others may compensate for the losses.
Inflation Protection. Real estate and precious metals (especially gold) tend to retain or even increase their value during inflation.
Passive Income. Real estate can provide steady income through rent or reduce housing costs in private investments. Stocks generate dividends, and businesses offer profits.
Capital Growth. Real estate, stocks, and successful businesses provide significant potential for long-term growth.
Physical Assets. Precious metals and real estate are tangible assets that retain value even during crises.
Flexibility. Businesses offer opportunities to manage your time, resources, and strategies for asset growth.

At the initial stage of investing, capital can be evenly distributed across portfolio assets. However, for long-term success, it is crucial to manage asset proportions wisely, account for market changes, and monitor liquidity.

Drawbacks and Weaknesses of the Financial Stability Investment Portfolio

Liquidity. Real estate and businesses are harder to sell quickly compared to securities, making them less liquid. On the other hand, the portfolio includes highly liquid assets like securities and precious metals.
High Initial Costs. Investing in real estate or starting a business requires significant upfront capital. Private investors can start by buying a stake in a business, and real estate can be smaller-scale, such as a parking space, garage, or vacation plot.
Business Risks. Businesses face various risk factors, including economic downturns, competition, and poor management. However, business assets can be insured, such as equipment, which increases the chances of breaking even under adverse conditions and bankruptcy.
Vulnerability to Market Fluctuations. Securities and metals are highly volatile, especially in short periods. However, they often correlate inversely—for example, when stock prices fall, precious metals tend to rise.
Complexity of Management. Businesses and real estate require time and expertise to manage effectively, especially for novice investors. Like everything else in life, they demand knowledge and skills, so starting small is essential. The toughest challenges are often at the beginning, so learning to invest is better done with conservative portfolios rather than high-risk, high-reward options.
Regulatory Risks. Real estate can be affected by changes in tax laws, while businesses and securities are vulnerable to political or economic instability.
Dependence on Economic Cycles. Real estate and precious metals are sensitive to macroeconomic conditions, as are securities.

The optimal strategy for conservative investing in the assets of this financial stability portfolio is as follows. Balance real estate for stability, metals for protection, securities for capital growth, and business as a primary income source.

Presentation of the Financial Stability Investment Portfolio

In MS Excel, we present a pathway for beginner private investors to enter the financial world through financial stability. The primary function of this type of data visualization is to highlight achievements made in small steps and motivate further progress toward the goal.

The visualization script outlines two stages of navigating the same pathway:

Stage One – Initial. This stage minimizes the entry barrier for each investment object to make the portfolio accessible in total cost. For example, for real estate, it might mean a garage instead of a house; for business, a workshop instead of a factory, etc.

Stage Two – Progressive. Once the portfolio has been implemented at the initial stage to the level of an MVP (minimum viable product), the focus shifts to accumulating for these asset types again but on a larger scale. From quantity to quality. The goal is to increase the profitability of the reliable portfolio by expanding the capital intensity of each asset. For example, in the real estate category, the capital intensity of a residential house is higher than that of a parking space.

Assets with higher capital intensity can generate more profit by enabling the efficient investment of greater sums over the same accounting period.

This presentation can also showcase a more aggressive approach to forming a financial stability investment portfolio. For example, accumulating investment objects of varying quality and capital intensity simultaneously, as shown in the diagram below:

Download Animated Infographic Template for Financial Stability Portfolio in Excel download file

In upcoming infographic templates, we will create and use similar charts with unique designs to present strategies for investing in personal finances.