Why it matters
If one investment falls, others may hold up better, so no single loss hurts as much. It reduces concentration risk.
What it cannot do
Diversification does not guarantee a profit or protect you from loss, especially when markets fall broadly.
Ideas to consider
- Mix income-focused and growth-focused options
- Avoid putting most of your money in one investment
- Match investments to your time horizon
General information only, not advice. See our glossary.