I can minimize my risk while maximizing my potential gains by diversifying investments among types.
Why is it important to diversify our investment?
Diversification of investment can be regarded as a strategy which helps in reducing the portfolio's risk as an investor and helps in maximizing our potential gains.
With this method its possible to get more stable returns with our risks been minimized.
Examples of diversification could be:
- cash
- fixed interest,
- property
- shares.
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