Tip #9 - Diversification
Every week we post a tip that we hope will help you become a successful share market investor.
Tip #9 — Diversification
When it comes to investing, diversification is important for two reasons: it can potentially protect you against undue losses if investments in a particular company, sector or asset class fail, and it can actually improve the overall return of your portfolio. For these reasons it has been described as the only free lunch in investing but it is important not to go overboard. Diversification does not guarantee success and if it’s overdone it adds complexity and has the potential to dilute rather than improve returns.
This information is not a recommendation nor a statement of opinion. You should consult an independent financial adviser before making any decisions with respect to your shares in relation to the information that is presented in this article.
FURTHER READING
How Australia is closing the gender gap in investing
New Sharesight data reveals Australian women are the most engaged investors in the Western world. So what's driving the gap?
Track your TFSA with Sharesight
You can easily track your Tax-Free Savings Accounts (TFSAs) in Sharesight, in addition to your non-registered, RRSP and RRIF accounts.
Track your RRSP and RRIF in Sharesight
Canadian investors can automatically track their Registered Retirement Savings Plan (RRSP) and Registered Retirement Income Fund (RRIF) accounts in Sharesight.