LESSONS IN INVESTING

Lesson 8: Why is diversification important? 

Diversification simply means spreading your risk: maintaining exposure to as wide a variety of investment opportunities as possible, and avoiding concentrating your choices in too narrow an area. It's one of the fundamental pillars of a well-balanced evidence-based portfolio. 

Watch the previous lesson: can a star fund manager make a difference? 

Watch the next lesson: how do our emotions affect our investing behaviour?