Don’t put all your eggs in one basket

By and large, most investors are more concerned about losing money rather than making money.  They don’t want to see the value of their investments fall.  Its a common trait in most people.

And therein lies the dilemma for Advisers.  How to protect the Client’s savings while at the same time get a good return?

The answer is Diversification of assets.  Diversify the investments over many funds, many sectors, and many asset classes.

Studies have shown that a diversified portfolio doesn’t always sit at the top of returns but there again it is also very seldom at the bottom of the heap.

A diversified portfolio designed to meet each investors specific needs in line with their risk profile will help clients avoid the downside risk of a “non-diversified” portfolio.