ASSET MANAGEMENT

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Diversification is essentially a risk management strategy that aims to balance risk and reward within an investment portfolio.  

Diversifying your investment portfolio can help limit your exposure to any single type of asset, therefore helping to reduce the risk and volatility of your portfolio. The primary goal is to spread your investment portfolio across many different asset classes to mitigate the risk of each. 

This type of diversified portfolio aims to ensure long-term returns and lower risk over time. Essentially, the best way to look at portfolio diversification is to think about the phrase ‘don’t put all of your eggs in one basket’. You want to ensure that, should the public market be experiencing volatility, you have alternative investments that can withstand this and offer multiple sources of return at the same time.