d people throw around without really explaining, but of course, fo
Let us begin with what we all do — eating. If you eat food, you
will be familiar with certain terms. For instance, if you always eat rice and
eggs, it is right
newsvilla.org to say you are missing out on some other vital nutrients in
your diet, and it is the same thing if you consume just pounded yam. Pounded
yam is a great food, especially with a soup like egusi or genger (amongst the Tiv
folks), but even these combination still lacks some basic nutrients you get
from other foods. And that’s the reason the healthiest diets contain a range of
different meals — just to make sure you are getting everything your body needs.
What are we saying?
onnp.org What your body needs is a healthy diet, and that cannot be
found in just a meal. A healthy diet is diversified, just how we should think
of investing.
‘Diversification’ is
one-word people throw around without really explaining, but of course, for
obvious reasons — every
panifol.com one should know what it is. Diversification is about
spreading money across and between different kinds of investments (also
referred to as ‘asset classes’). It is not limited to asset classes alone, but
can also extend to investment products. The aim is usually to reduce risks
which come with investing singularly, as you get to lose money when they
under-perform. Diversification is that still voice which advises you to not put
all your eggs in one basket. It is the same voice which tells you to build an
investment portfolio, made up of different types of investments with different
attributes which behave differently.
The most important
question is, perhaps, how will diversifying help your investment?
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