STICK TO ONE IN­VEST­MENT PROD­UCT OR DI­VER­SIFY?

Simply Her (Singapore) - - Beauty -

Ex­perts usu­ally ad­vise you to spread out your risk by in­vest­ing your money in dif­fer­ent types of prod­ucts. In case one in­vest­ment bombs, the rest may do bet­ter, so it helps bal­ance out your over­all port­fo­lio.

One way of di­ver­si­fy­ing is to buy into dif­fer­ent as­set classes, such as keep­ing some money in the “safer” (but lower yield) fixed de­posits and in­vest­ing in some higher-risk bonds and stocks.

You can also in­vest in dif­fer­ent mar­kets, such as buy­ing into dif­fer­ent types of in­dus­tries, com­pa­nies, geo­graphic re­gions, for­eign coun­tries or cur­ren­cies.

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