Investing: What is Diversification

“What is Diversification?”

Diversification is an investment principle designed to help manage risk.  The key to being diversified is to identify investments that may perform differently under various market conditions.  By allocating your money among various types of asset classes such as stocks, bonds, mutual funds and ETFs to name a few, you can reduce your exposure to any one particular asset class or risk.  Being diversified does not guarantee against a loss. As the old saying goes “Don’t put all of your eggs in one baskets?”

Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER TM in Carlsbad California.

If you would like to set up a free 30 minute financial assessment she can be reached at 760-692-5700, info@savvyup.com for private message or click on the following link to contact us directly http://savvyup.com/contact .

Sign up for our “Savvy Up Today!” newsletter by clicking on the following link http://bit.ly/2HTEaJ9 to receive financial tips about investing, managing your money, planning for retirement and invites to upcoming events. Get Savvy about your Finances & Live your Life Empowered!

www.SavvyUp.com
#SavvyUp

 

Posted in Investing, SWWM, The Savvy Minute Tagged with: , , , , , , , , , , , , , , , , , ,