Diversification

Don’t put all eggs in one basket!

Don’t put all eggs in one basket!

As financial advisers, we talk all the time about the benefits of investing in different investments (asset classes) at the same time to spread risk.

The above chart shows the “ups and downs” of different asset classes over the years.

Also included is an “equally weighted” or diversified portfolio (the white one) which is an equal blend of the twelve asset classes.

The diversified portfolio is never in the top three but also never in the bottom four of returns.

We use quality risk profiling tools to design diversified portfolios to meet  the specific needs of our investors.  Our focus is to help our clients reduce the downside risk of a “non-diversified” portfolio.

Contact Us on 01384 671947 for a complimentary review of your investment portfolio.

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The value of your investment can go down as well as up and you may not get back the full amount you invested.

About the author: Tim Veiro