Diverse Portfolio

How important is it for you to diversify your investment portfolio?

An investment portfolio is extremely important to diversify primarily because it shows a unique approach towards business. A diversified portfolio will ensure that the individual or company is not only smart in their investment but it will also show other companies that wide array of knowledge of the industry that the investor has. The importance of a diversified portfolio lies in the fact that it provides the investor a wise perspective on the market and allows him to handle the entire range of investments in a calculative and profitable manner. A diversified portfolio also portrays an image that the investor is skilled in assessing and reacting positively to the different market and investment sectors (Allen, 2008).

The biggest advantage of having a diverse portfolio is the fact that the risk factor decreases to a level that is...
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