Investment FAQ – Why Do I Need to Know About Asset Allocation and Diversification?
Like the saying goes, its rarely a good idea to put all of ones eggs in the one basket.
Each type of financial asset carries with it its own characteristics of risk and return, and depending on the prevailing economic and financial conditions some assets are likely to do well, whilst others don’t. Marrying assets together to take into account these characteristics is vital to ensuring an investor achieves his or her financial outcomes over a suitable timeframe and within their tolerable risk limits
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