Diversification is a term you will hear often when it comes to investing. It simply means not putting all your eggs in one basket. Spreading your money between assets and asset classes is the easiest way to boost your returns while reducing risk.
Investing in a spread of different assets, across multiple industries and in a variety of geographical areas lowers your portfolio's risk because different asset classes do well at different times.
“Over the past 20 years, we can see that the steadiest return is achieved by a well-diversified, multi-asset portfolio,” says Prue Cheeseman-Goodes, a director of wealth management at HLB Mann Judd Sydney.
“The best-performing sector one year could likely be the worst performer the next year. You want to ensure you are appropriately diversified across the