Investment tips: Diversification
Besides equities, investors should invest in assets that have a low correlation with stocks
When allocating assets, investors should incorporate assets with low correlations in order to balance risk and return
Despite the low risk levels in cash and money funds, their values will depreciate in real terms in an inflationary environment
Investors should allocate assets in their investment portfolios in accordance with their own levels of risk tolerance
Only invest in investment tools you understand
Invest in several single stocks to achieve investment diversification
Invest in several mutual funds to achieve investment diversification
Diversify risks by holding a large amount of cash or money funds
The more diversified the investment portfolio, the better
Invest in unfamiliar investment tools to diversify investments
Learn more about other trainings to further improve your FinFit.
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