Why Investing is Not a Case of One Size Fits All

Pay attention to the mix of assets in your portfolio. What's right for you may not work for someone else, and what's right for your Isa portfolio may not suit your pension

Marco Caprotti 18 February, 2021 | 9:03AM
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Diversification

“Diversification, diversification, diversification” is the mantra we must repeat every time we make an investment decision. In other words: don't put all your eggs in one basket (or portfolio, in this case). But what if we have more than one investment basket? The risk, in the investment world, is that being overweight in assets can unbalance the investment plan we have made.

Firstly, what is asset allocation? It is the mix of different asset classes (equities, bonds, etc) in your portfolio. Historically a simple method of 60% equities and 40% has sufficed for many investors, but others like to have exposure to additional assets such as gold, property and renewable energy. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Marco Caprotti

Marco Caprotti  è Giornalista di Morningstar in Italia.

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