Why Diversification Matters
Diversification helps reduce risk by spreading investments across various asset classes, industries, and geographic regions.
Asset Allocation Strategies
- Stocks: For growth potential
- Bonds: For stability and income
- Real Estate: For diversification and inflation protection
- Commodities: For hedging against inflation
- Cash: For liquidity and safety
Steps to Build Your Portfolio
- Determine your risk tolerance
- Set your investment goals
- Choose an asset allocation strategy
- Select specific investments
- Rebalance periodically