Introduction to Personal Investing

The Basics

What are some other reasons why I should diversify my investment portfolio?

Diversification will not guarantee that you won’t lose money or make big gains with your investments. But it will help you to have a portfolio that matches your appetite for risk, especially if your investment choices are less relatively tied or correlated. The most important point about investment portfolio diversity is that in a perfect world, while the value of your total portfolio will increase less than your best-performing investment, it will never do worse than your worst-performing investment.


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