Do you have the best mix of investments?
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reggy Apprentice
Joined: 23 Dec 2004 Posts: 6
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Posted: 06/18/08 - 07:17 Post subject: |
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| Hello there everybody! My name is Alfred and I would appreciate if you can give me some information about investing. A friend of mine asked me: “Do you have the best mix of investments?” To tell you the truth, I didn’t know what to say. Can you tell me what did he mean by that term? Thank you. |
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linn Apprentice
Joined: 12 Jan 2008 Posts: 4
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Posted: 07/18/08 - 03:46 Post subject: |
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| Hi there Alfred. I think that this is a common term in the investor’s world. Your friend probably wanted to know about diversity of your portfolio. You see, it is never good to have only one type of assets in your portfolio, because it can lead to greater loss if something goes wrong. That’s why you have to create a mix of different assets. They should be of different risk level and different liquidity. That way, you are reducing the overall risk of investments. So, if you don’t have the best mix of investments, talk to your broker or some investment adviser about it. Well, that’s it from me. Take care! |
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