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
Product updates - September 2026
See what’s up and what’s down at a glance with our new gains & losses toggle, and more product improvements. It’s all in Sharesight’s September update.
August top trades: Apple in, Microsoft out and Australians trade close to home
Deep dive into the shares, stock and ETFs Sharesight’s investors bought and sold through August 2026, and stay up with the latest share trading trends.
Sharesight product updates – August 2026
This month's focus was on support for the Taipei Stock Exchange, franking credit estimates for Australian ETFs and a range of report improvements