| "Do not put all of your eggs in one basket!" You | | | | Also invest directly into cash savings accounts for |
| have probably heard that over and over again | | | | short term easy access to avoid realising longer |
| throughout your life and when it comes to | | | | term assets during difficult market conditions. |
| investing, it is very true. Diversification is the key | | | | You should also strongly consider alternative asset |
| to successful investing. All successful investors | | | | classes totally uncorrelated with world markets. |
| build portfolios that are widely diversified, and you | | | | Throughout history high net worth individuals have |
| should too! | | | | allocated a portion of their wealth to tangible rare |
| Over time, research has shown that investors | | | | assets that continue to appreciate through |
| who have diversified portfolios usually see more | | | | turbulent markets. No I am not speaking of gold |
| consistent and stable returns on their investments | | | | bars, but assets often worth many times their |
| than those who just invest in one thing. By | | | | weight in gold such as works of art and rare |
| investing in several different markets, you will | | | | stamps. Some investors may laugh at the latter, |
| actually be at less risk also. | | | | but one particular index has produced an average |
| A good diversification will usually include stocks, | | | | 13% compound return over the past ten years, |
| bonds, real property, and cash. It may take time | | | | easily out performing major world markets by a |
| to diversify your portfolio. Depending on how | | | | healthy margin and without the volatility. |
| much you have to initially invest, you may have | | | | You do not have to be an expert or have any |
| to start with one type of investment, and invest | | | | knowledge whatsoever to become an investor |
| in other areas as time goes by. | | | | rather than a collector. The world's leading |
| Experts also suggest that you spread your longer | | | | authority established over 150 years and holding a |
| term investments between different asset | | | | Royal Warrant will construct and actively manage |
| classes In other words, spread your capital | | | | your portfolio. It is even possible to obtain |
| between mutual funds related to stocks, | | | | minimum guaranteed returns with unlimited upside |
| international shares, commercial property and | | | | potential. Now that is what I call a true alternative |
| fixed interest government corporate bonds. | | | | investment strategy! |