Welcome to our Guide to Creating a Diverse Investment Portfolio. ‘Don’t put all your eggs in the same basket’ is probably the best-known proverb advising investors about the importance of portfolio diversification to spread and reduce risk.
The major advantage of portfolio diversification is its ability to protect your entire portfolio from the volatility associated to various asset classes. In this guide, we look at ways to protect your portfolio by spreading your risk across several different asset classes and some of the many different assets in which you can invest, each with different risk characteristics.
How to work out your own investing style when things aren’t black and white.
Managing the risks you are exposed to in order to avoid suffering losses to your capital.
Principles of diversification
Minimising exposure to the volatility and market setbacks.
Why are you building an investment portfolio?
Every investor is unique, but everyone faces the same trade-off between risk and reward.
Reducing investment risk
Choosing a broad spread of instruments in which to invest.
A higher return on your investment
Invest as much of your annual ISA allowance as you like in either a Stocks & Shares ISA or a Cash ISA, or any mixture of the two.
Professionally managed collective investment funds.
Building block of many investor portfolios
Investing in bonds, pooling your money with thousands of other small investors.
Deciding how to weight your portfolio.
Investing for income
Alternatives for income seekers during a period of low-interest rates.
Regular portfolio reviews
Considering the suitability of your investments.
Is it time to review your investment portfolio?
Creating and maintaining the right investment portfolio plays a vital role in securing your financial future. Whether you are looking to invest for income or growth, we can provide the quality advice, comprehensive investment solutions and ongoing service to help you achieve your financial goals. Please contact us to discuss your requirements – we look forward to hearing from you.
Phone: 0141 643 9200