Diversification is a buzz word that gets thrown around a lot in the finance world. But does everyone really know what diversification is?
I think most probably know the high level definition: diversification is not putting all your eggs in one basket. It is spreading out your investments across different investment vehicles so that if one part of your portfolio goes down, hopefully others can cover it.
But what about the nitty gritty details of diversification?
Like how you can be diversified across sectors, through different asset classes, and internationally.
Or how to know if you are actually achieving diversification in your portfolio?
That’s what we’ll be diving into in this article. We’ll go a bit more in depth that we usually do, but at the end simplify it down for you so that you can easily take action to build your own diversified portfolio.[Read more…] about What is Diversification?