Courtesy – simplilearn
You would have heard the old saying that you should never play all your eggs in one basket. It summarises the entire philosophy behind the diversified investment portfolio. The idea is to spread out the risk because you do not want 100% of your capital riding on just one investment. For instance, you would not want to have an entire investment portfolio allocated to commodities that might represent prolonged growth or even improper risk allocation. At the same time, you should not invest 100% of your capital in penny stocks which might go up and down in value just like your wind blows. Hence it is essential to maintain a diversified investment portfolio that will help you reap the maximum benefits of multiple investments at the same time while protecting yourself from a single catastrophic loss if any of the investments ends up stumbling.
Tips for creating a balanced investment portfolio
The capital investment project manager helps you create a balanced portfolio. They will include everything mentioned here in your portfolio so that you can make the most of your investment
Penny stock
a more specific type of stock market investing goes around penny stocks. The stocks that have a small price tag and potentially use return are termed penny stocks.
Mutual fund investing
Mutual fund investing is one of the great ways to invest in the stock market. They exist to spread the risk.
Hence it would help if you considered having all your investments balanced.