What is a diversified investment portfolio?
A diversified investment portfolio is spread across a number of different asset classes and geographical regions. This way, investors can take advantage of different investment areas to maximise the best possible returns according to their risk profiles. A diversified portfolio is reviewed regularly by a wealth manager. This ensures market fluctuations are accounted for and the portfolio remains aligned with the investors’ objectives and accepted levels of risk. Assets will perform differently. Equities, for example, typically come with higher risk but also higher returns. Bonds, on the other end of the spectrum, build slowly but are less risky.