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How can you make the most out of diversification?

Diversification is a word that seems to get tossed around a lot in conversations around savings and investment. We hear it often, but what does it mean? Put simply, diversification is a risk management strategy that mixes a variety of investments within a portfolio. Through having different kinds of assets in a portfolio, the goal is to obtain higher long-term returns and lower the risk of any sole holding. Essentially, you are hedging your bets. By smoothing out the risk of each investment within your portfolio, you’re aiming to neutralise the negative performance of some investments with the positive performance Read More