Question

Why should you diversify your investment portfolio?

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5th May 2010 by JonB

Diversification is generally done to reduce risk by being overexposed in a certain sector or industry. The logic behind diversification is to lessen the impact of the unexpected. If you have assets in a wide array of sectors, it is less likely that one major event will do major damage to your portfolio.

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This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



4th May 2010 In Investing 1 Answers | 484 Views
Subjects: portfolio,

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