What is Investment Diversification?

Investment Diversification is basically the art of spreading your investments around over a number of different ‘platforms’, protecting you from potentially losing a significant amount of your assets value in a market downturn.

The sharp decline in stock prices in recent years are proof enough that putting all your eggs in one basket can be a risky strategy. In order to diversify correctly, you need to know what kinds of investments to invest in, how much money to have in each one and how to diversify within a particular investment category.

This is where taking good financial advice is very important. Having a lot of investments does not make you diversified. To be diversified you need to have mix of different kinds of investments or assets. UK stocks market equities, bonds and gilts, property and cash are some of these asset types commonly held within a portfolio.  The percentage of each asset held in your own investment portfolio would be based on your own overall attitude to risk.

At Goldstone Wealth Management whether it be face to face advice, or via the Direct Invest online service, we will take time to assess your attitude to risk to ensure that you have an investment mix which will suit you, as well as helping you to achieve your investment goals.

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