Diversification Strategies After reading my last post, you’re no doubt well aware of the importance of diversification in managing risk and enhancing returns in your investment portfolio. However, diversification goes beyond simply investing in different asset classes. In this article, we’ll explore the various diversification strategies available to investors in Australia and how they can be applied to achieve your investment goals. One common diversification strategy is sector diversification, where you spread your investments across different sectors of the economy such as technology, healthcare, and finance. This reduces your exposure to any single industry’s performance and allows you to capture returns from multiple sectors. Another diversification strategy is market cap diversification, where you invest in companies of…
