February 13

The Importance of Asset Allocation and Diversification in Everyday Investing

We would all like to have the highest value investments that mature in the shortest time; however, in reality, investments rise and fall in value from time-to-time. So, how do you ensure that your investments provide a good long-term return?

Our Asset Allocation and Diversification for Everyday Investing video explains how important it is to share risk across different investments (also known as diversification).

Summary

The Asset Allocation and Diversification for Everyday Investing video will help you to understand how to optimise your investment on return over time by understanding the importance of diversifying your investment portfolio.

An asset allocation manager will seek to avoid both steep and gradual losses, as they are hard to recover – even over time. Instead, you can strive for an optimum investment position by diversifying your portfolio according to your risk level.

 

Key takeaway

  • Avoid too many sequential and steep losses over time.
  • Manage the downside risk with the best risk management tools available.
  • Diversification is the best way to manage risk.
  • Use an ‘eggs in baskets’ approach, with percentages within UK shares, Government bonds, Overseas shares and property balanced according to your attitude to risk.
  • Work with a skilled asset allocation manager who can determine your risk position.
  • Review, renew and rebalance your investments over time as circumstances change and results appear.

Would you like advice on your investment portfolio? Coach House work with you to strive for the optimum position and to help you with exceptional investment experiences. Get in touch with us, we’re happy to have a chat with you. 


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