What makes investing so risky?
Investing will always be risky since nothing is guaranteed, but you can choose a combination of assets that makes investing less risky.
Diversification is a technique used to manage risk by adding different types of investments to a portfolio.
Diversification is not just creating a portfolio of ten stocks instead of two. To maximize the benefits of diversification, a portfolio should contain a mix of assets (bonds and stocks).
Within each asset class, there should be more than one type of security.
The choices should contain issuers who face different types of risk, or varying degrees of the same risk.
Combining the various securities will …read more

When it comes to handling investments, what’s your style?
There are two decisions that every investor has to make: asset allocation and security selection. The priority placed on each decision can reflect your risk tolerance, investment goals, and your beliefs about market efficiency.
What’s your investment style?
The Asset Allocator – Your priority is to determine how much of your portfolio dollars should be invested in each of the broad asset classes: bonds and stocks.
You believe that markets are pretty efficient, and as such, it is not worth the extra time or effort to constantly adjust your portfolio’s holdings in search of abnormal returns.
The …read more