2020 can be the year that you see your portfolio really start to grow. If you’ve spent years spinning your wheels financially, this is the year to change it. There are several investments that can help you diversify and grow your portfolio in the coming year. 

Cash Equivalents
The first type of investment you’ll want to hold is cash or a cash equivalent, like a money market account or a certificate of deposit. These investments will not be likely to grow much, and they’ll probably lose purchasing power over time due to inflation. However, they will help you build up an emergency fund for those unexpected expenses the crop up and keep people from being able to invest in vehicles that will really build wealth. 

Municipal Bonds
If you’re looking to save on your taxes and make money at the same time, municipal bonds can provide tax-free income. You might have to pay state taxes on municipal bonds, but they’re exempt from federal income taxes. There are funds that focus on municipal bonds, and these will allow you to diversify your holdings immediately.

Bond Funds
There are also government bonds and corporate bonds on the market. They pay varying interest rates, but they can keep the volatility of your portfolio down when the stock market is dropping rapidly. This will make it less likely that you’ll sell at an inopportune time. Buying a fund will also provide the benefit of instant diversification. 

Index Funds
The best way to invest in stocks is to buy a bunch with a single purchase. While mutual funds usually require an initial investment of $1,000 or more, an ETF only requires the purchase of a single share. These funds tend to track a given index or aim to provide a given result like dividend growth. 

Real Estate
If you live in an area that’s got a stable or growing population, investing in local real estate might be a great way to grow your portfolio. There’s usually quite a bit of leverage involved with real estate investing, but if you can keep your property occupied with renters, it’s possible to have someone else pay your mortgage each month while you build wealth.

These are just a few of the more common ways to grow your investment portfolio. The best step to take is just to start investing. If you don’t, you’ll never be able to grow your net worth.