How Diversification can lower your risk | Mutual funds for beginners

The saying goes – ‘don’t hold all your eggs in one basket’.

Diversification helps to minimize that risk by having a variety of investments in your portfolio. Diversification is the greatest power in a multi-asset fund as it helps you balance your portfolio.

If one investment goes poorly, you are protected by the other investments. If one asset does very well, you get some benefits of that as well.

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