Diversify your investments from "summary" of Know Your Money by
When it comes to investing, it's important to spread out your money across different types of investments. This is known as diversification. By diversifying your investments, you can reduce the overall risk in your portfolio. Imagine putting all your eggs in one basket – if that basket falls, you lose all your eggs. But if you spread your eggs into different baskets, even if one falls, you still have eggs left in the other baskets. The same principle applies to investing. Diversification helps protect your investments from market volatility. Different types of investments may perform differently under various market conditions. For example, stocks may go up when bonds go down, and vice versa. By holding a mix of asse...
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