DIVERSIFY
It is one of the simple and fundamental rules of investing, that you should spread your investments between a number of different types of investments.
Diversification is an exercise in safety and in achieving better
consistency of year by year results. Safety results from the
obvious reduction in risk of big losses from having had all one's
eggs concentrated in just a few baskets.
Diversified Portfolio
A well balanced portfolio normally contains some investments in each of the following:Property: Residential, Rural, Industrial, Retail, Commercial, Offices.
Shares: NZ, Australia, Asia, Europe, North America.
Fixed Interest: Govt Stock, Local Authority Stock, Corporate Notes.
Cash:Mortgages, Term Deposits, Bonus Bonds, Debenture Stock, Bank Accounts.
How to Build a Diversified Portfolio
Or; why you shouldn't invest in shares!One of the blind spots that most advisors have when talking to client about creating a diversified portfolio is that you need to begin with a reasonable amount of money to create the portfolio in the first place.
For most people this is an unrealistic assumption.
Special Report
If you would like a copy of my report on how to go about building an investment portfolio from ground zero. CLICK HEREUnsolicited Electronic Message Act 2007. Requesting one of my free reports will also subscribe you to my email newsletter service. You can unsubscribe from my email newsletters at any time by replying to this email or a newsletter with “Unsubscribe” in the subject line.
| ::about me:: | ::legal and disclaimers:: | ::contact information:: |