Diversify your investments

Protect your investments — and catch upward market swings — by diversifying your portfolio.

by MoneySense staff
April 18th, 2011

Online only.

Anyone who has invested even one dollar is probably familiar with the idea of diversification.

Holding a varied portfolio not only lowers the likelihood that one single disaster will blow a hole in your nest egg, it also guarantees that you’ll have a part of any good news going.

To ensure you’re diversified, make sure that your holdings include both stocks and bonds. Your stocks should span several industries, rather than being concentrated in a single sector.

They should also be geographically diversified, with Canadian, U.S. and international firms in the mix.

A good way to achieve such diversification and save money on fees is to purchase an exchange-traded fund or low-cost mutual fund as espoused by our Canadian Couch Potato blogger, Dan Bortolotti. For more information, visit his blog here.

16 comments on “Diversify your investments”

One of the biggest mistakes of Investors is focusing on the same things at age 50 as they did at age 30. That problem is compounded by the fact that those investors hev begun to believe their own strategies but they don't have time for markets to recover at or near retirenent as they did as young people.
Once income is taken our of a portfolio to spend on lifestyle it will never recover the loss once it is spent.

Reply ↓

Gordon Hughes on June 10, 2011 at 11:33 pm