Benefits of a Diversified Portfolio

  1. Minimizing the risks:
    If one investment performs poorly over a certain period, other investments may perform better over that same period, reducing the potential losses of your investment portfolio from concentrating all your capital under one type of investment.

  2. Capital Preservation:
    Not all investors are in the accumulation phase of life: Some who are close to retirement have goals oriented towards the preservation of capital, and diversification can help protect your savings.

  3. Better Returns:
    Sometimes investments don’t always perform as expected, by diversifying you’re not merely relying upon one source for income.

Great post!

Thank you Vinay. Great info

On point

Diversity is always important. Thanks for the summary!

Good info, thanks. :beer