Planning your investment: Step 3 - Know the concepts of investing: Diversification

A proven strategy for successful investing is diversification - to vary your investment.

Diversification is an effective way of minimising risks and protecting you from volatility in a particular asset class or industry.

Different types of investments are exposed to different risk and by diversifying, the losses in some investments can be offset by other investment gains.

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Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)

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Knowledge Base ID :   1406
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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