Updated: Jun 19, 2021
Have you ever questioned if your investment portfolio is well diversified? What happens when your investment portfolio lacks diversification?
The stock market and real estates are picking up at a surprise level, especially in Australia. And what will happen next? What will happen to the Australian cash rate? What will happen to Aussie dollars and what about gold?
Many factors are contributing to the market fluctuations and hence your investment portfolio is going to be impacted.
What if the market is taking a downturn?
Well, you may not notice your portfolio is losing money in a particular period of time, especially when you are holding your portfolio for a long period of time. The truth is, many diversified portfolios can increase even in the market downturn. This is the beauty of diversification.
Diversification is a useful strategy which might return you a higher income with the least possible risks.
How does diversification work?
Diversification is the mixture of different types of assets (such as stocks, bonds, real estate derivatives and commodities) where the assets don't correlate with each other.
It really depends on how you structure your investment portfolio to aim for the best outcome with the lowest risk.
What proportion of each asset class should be in your investment portfolio?
What type of asset class and how does it affect your portfolio's overall return?
What does an appropriate diversified portfolio look like during this uncertain time?
To learn how to structure your portfolio efficiently, all you need to do is to take our short quiz and 1 hour one on one coaching session (special price is available for a limited time the total cost usually $199.95 now only for $149.95 you have saved $50)
What you will get when completing a coaching session:
1. A PERSONALISED LEARNING PLAN that you will find useful to your FUTURE investment success
1. Understand how DIVERSIFICATION works at a deeper level and how it applies in reality
2. Understand your own RISK PROFILE and how it affects your portfolio's outcome
3. Understand and start implementing diversification into your own portfolio that potentially achieves high returns while minimizing the risks and the portfolio that suits your risk profile.
4. Gain entry level to our Wealth Creation or Smart Investor Course.
About our coach: Jennifer holds a Master of Applied Finance degree (Macquarie University) and a Postgraduate qualification in Financial Planning (University of New South Wales). Besides, she also holds academic qualifications from University of Newcastle and certificate from Harvard University. She has 15 years of combined experience in the financial industry and trading experience. She is also a Senior associate member of FINSIA (the Financial Services Institute of Australasia).
An example of diversified investment portfolio by asset class
An example of diversified investment portfolio by industry sector