The importance of diversification
Risk is a fundamental aspect of investing. To help manage it, a diversified investment portfolio is key.
What is a diversified investment?
An investment that spreads your money across different assets such as bonds, shares, property and cash. Different assets rise and fall at different times.
Spreading your money across a number of companies and assets can reduce the risk if any one investment does not do as well as expected.
Investment funds are an easy way to achieve diversification within your portfolio.