The Benefits of Diversifying Your Investment Portfolio
You’ve likely heard that you shouldn’t put all your eggs in one basket. In investing, that’s not just a cliché—it’s a survival tactic. Diversifying your portfolio means spreading your money across different types of investments so that a dip in one area doesn’t wipe out your gains in another. It’s how you reduce exposure to risk while still giving your money a chance to grow. In this article, you’ll learn what diversification really means, how it protects your portfolio, which asset mixes to consider, and what steps you can take today to improve the balance of your investments. Why You Can’t Rely on Just One Investment When you concentrate your money in a single stock, sector, or market, your results depend entirely on how that one thing performs. Even a great company can suffer from bad press, missed earnings, or market panic. That’s why diversification matters. It helps you reduce the impact of unexpected events in one area by balancing it out with different kinds of investment...