Diversification in any kind of investment strategy is recognized as being of paramount importance, particularly since a diverse investment portfolio can create a sort of insulating effect against any potentially devastating circumstances. In its efforts to inform and empower its investors, Ironfish reviews principles from all industries with the understanding that some of these principles could be applied with great results to a comprehensive property investment strategy. With regard to niche marketing principles, the superficial view would seem to be that a niche approach is somewhat at odds with the inherent practicality of diversification, but that is not necessarily the case upon deeper inspection.
As Ironfish and others have recognized, niche marketing principles can indeed be applied to any number of investment strategies, including property investment strategies. In niche marketing, of course, the idea is to carve out an area of the market that is underserved or is largely viewed as a subset of a larger entity. By focusing on a specific niche and cultivating the status as an expert and an authority, an investor is able to establish a firm grip on this kind of market and therefore generate greater results through this strategy. In property investment, niche markets and niche properties absolutely exist, and it is possible — assuming the other influencing circumstances remain ideal — for investors to adopt a niche strategy that remains in keeping with the principle of investment portfolio diversification.
