Monday, August 26, 2013
Diversification: Why Variety is Better When Investing?
What is Diversification?
In the investment world, diversification means to invest your money into a variety of investments to help reduce risk. Which means you should never place all of your eggs (money) in one basket (investment) because if something negative happens to that basket (investment) then you'll lose everything (all your money). Instead you should diversify your investment portfolio by investing in a variety of investments such as stocks, real estate, bonds, etc. Unfortunately the average person don't have enough money to invest into a variety of investments. However, this is why mutual funds were created. A mutual fund will give an average person with a small amount of money an opportunity to invest into a diversified investment portfolio. If you would like to create a diversified investment portfolio but you don't have a lot of money, please visit Make Money Work for You (Investing in Mutual Funds) to learn more about Mutual Funds and how investing in them can benefit you.
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