Diversify your investment portfolio

Ever thought about protecting your investments from uncertainties? The answer is in the saying, “don’t put your eggs in one basket” or as we call it, portfolio diversification.

When you diversify your investment portfolio, it means you are distributing your money across different investments or asset classes. 

For instance, instead of investing your money in a single asset like domestic stocks you can distribute your investment across assets with different risks and returns (e.g foreign stocks, mutual funds, bonds, and real estate).

Diversifying your portfolio isn’t as complicated as it sounds, here are a few rules to follow to grow your money with less risk:

  1. Start by understanding your risk tolerance.
  2. Set your financial goals and duration for your investment to grow.
  3. Learn about the different assets that you are interested in.
  4. Choose an asset mix that works best for you considering your risk profile and investment goals.
  5. Invest in assets with different risks and returns.
  6. Create a plan on how you want to distribute your funds across each asset.
  7. Invest in a high-valued appreciating asset like real estate.

When it comes to investing, remember that there’s no one-size-fits-all method, and for this reason, it is important to learn more about how to manage your finances. 

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