Diversification is a technique used to lower the risk for an investment portfolio by spreading the specific risks of investing across many holdings.
We often practice diversification in other areas of our life without even realizing it. Think friends in different groups, external industry connections, reading widely, not just eating potato chips, having new travel experiences etc. It’s the idea that we shouldn’t rely on any one single "thing" and instead incorporate different things that are not directly linked together.
Fidelity defines diversification in investing as "the practice of spreading your investments around so that your exposure to any one type of asset is limited. This practice is designed to help reduce the volatility of your portfolio over time."
In today's episode, Kate & Owen discuss how they think about diversification in their own lives and what it looks like in our finances, investing, careers and life.
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Access the show notes for The Australian Finance Podcast: www.raskmedia.com.au/podcasts/australian-finance-podcast
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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.
Full individual disclosures for each guest are available via the show notes page. Owen, Kate and The Rask Group Pty Ltd do NOT receive anything for mentioning Super funds, products, shares, bank accounts, etc.
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