Why Is Diversification a Recommended Investing Strategy?

Why Diversification is Important in Investing?

Tomorrow is never promised, the future is unpredictable so diversification is immensely vital in investing.

- Minimizing risk of loss - Preserving capital - Generating returns

Benefits of Diversification:

It is a form of diversification of which an investment is allowed to own a share of a company. 

Diversification In Stocks, Bonds and Cash Assets:


This is a diversification that pays interest to you when you lend your money to a company or to the government. 


It is the money in your savings account, in your MK purse or the ones hidden in between your clothes in the closet.


Since investments in different assets, the risk therefore is spread out.

Advantages of Diversification:

Makes your Portfolio Better Shock-Proof

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