Importance Of Investment Diversification

Information about Importance Of Investment Diversification

Published on June 28, 2017

Author: roserose77

Source: authorstream.com

Content

slide 1: Importance Of Investment Diversification slide 2: "It is best not to put all of ones eggs into one basket" This is most likely a statement that you may have heard many times throughout your life and when it comes to investing this statement is a reality. Diversifying ones investments is the main factor in making a success when it comes to investing. All of the people who have made great returns from their monies have been seen to develop investment portfolios that operate in different market sectors and we advise that you should do the same too slide 3: Developing a varied investment portfolio might include purchasing various shares and stocks that come from companies that operate in different business sectors. Methods used to achieve the desired objective may consist of buying government bonds putting funds in money market accounts or maybe even into property i.e. buy to lets houses of multiple occupancy HMOs and also the standard buying and renting out homes. The key is to invest in different market sectors. slide 4: Over time all of the data shows that those who savvy investors who take the time to develop investment portfolios that are well diversified on average experience more stable consistent returns on their investments this is when compared to those investors who happen to put their monies in one investment vehicle. By investing in those companies that operate in different market sectors industrial retail consumer business to business etc etc will mean that your risk factor is lower too. slide 5: For example if you have invested all of your money in one company and that companys shares goes down you will lose some a lot or all worst case all of your funds. Looking at this from another perspective if you happen to have invested in say shares from ten different companies and nine are doing well while one plunges averages say that you will still make some money or your losses will be minimized.. slide 6: A good investment diversification portfolio will include a number of fundamentals e.g. they will include stocks shares bonds property and of course cash It may take time to develop a fully diversified investment portfolio. Depending on how much you have to invest at the outset you may have to start small say only investing in cash and then go onto invest in maybe property over times. slide 7: This methodology may prove to be fine - however if you can split the investments that you make at the start - it will be a fact that your risk of losing your money will be much lower and as time passes you will see increasingly more attractive returns from your monies. slide 8: The finance experts also say that you should spread your investment monies evenly among your chosen investments targets. Put another way - if you happen to start with an investment fund of £100000 invest £25000 in stocks and shares £25000 in property £25000 in bonds then decide to invest the other £25000 in a savings account that pays a decent amount of interest. slide 9: Glenn Hechler: https://www.youtube.com/watchvAc1zFSLLN2Y

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