26 Jul How to diversify your portfolio to limit losses and guard against risk
There’s a reason manufacturers make different product lines, and stores carry a range of goods: It protects their profits. If one item suffers a seasonal decrease in demand or is an outright flop, they may still be ok if the majority of the other items do well.
It’s a business strategy called diversification. And just as diversification is important in industry, it’s important for your investment portfolio as well.
The primary goal of diversification isn’t to maximize returns; it’s to limit risk. When you diversify your portfolio, you reduce your risk of experiencing massive losses when a few of your investments underperform. Read on to learn more about the benefits of diversification and for a step-by-step guide to diversifying your own portfolio.
Published by Clint Proctor in Business Insider.