Diversification is a key principle to reduce risk and achieve a balanced portfolio. As a beginner, here are some tips to help you diversify effectively:
- Asset Classes: Invest across multiple asset classes, such as stocks, bonds, commodities, and crypto, to spread risk. Different asset classes often perform differently under the same economic conditions, reducing overall portfolio volatility.
- Geographical Diversification: Consider investing in both domestic and international markets. This strategy helps mitigate risks associated ...