Why Diversifying Your Portfolio is Important

If you’re a beginning investor, it’s likely you’re concentrating on building your portfolio.  But as important as it is to build that portfolio, you should also ensure that it’s diversified.

Why is a diversified portfolio so important?

There are three key reasons why diversifying is important:

  1. A diversified portfolio helps minimize risk. Stocks can be a risky investment at any time, but with a diversified portfolio, you can help minimize the risk by spreading that risk among a variety of investments.

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