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 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 thes timesofamerica.info e 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? 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 — everyone should know what it is. Diversification is about spreading money acro tincona.com ss and between different kinds of investments (also referred to as ‘asset classes’). It is not limited to asset classes alone, but can also ex timevinger.org tend 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?