Every investor needs personal diversification. Smart Diversification fits your situation, goals, lowers risks and keeps the best income and growth holdings. Use smart diversification to keep risks as low as possible, while holding the best opportunities for income and growth. When managing your investments, managing diversification, is an important part of the process.
The Smart Diversification series outlines how investors apply this process. Diversification can be misused in the pursuit of lower risk. Smart investors use Smart Diversification to reduce portfolio risk while retaining portfolio performance with holdings that produce good income or superior upside potential.
Smart investors use smart diversification. Used well, diversification reduces portfolio risk. Diversifying well to reduce risk requires knowing how to make diversification choices and selections. The best diversification choices reduce risk without sacrificing portfolio performance. Too much diversification can ensure a portfolio underperforms the market without providing greater risk reduction. This post begins the Smart Diversification series from the White Top View blog that outlines how smart investors use smart diversification.