It’s a safe bet that with the current volatile markets, dealing with your investments has become stressful. Let our Credential® wealth advisors help you deal with that stress.
Now is the perfect time to ensure your portfolio is properly diversified for when markets do recover. Diversification is the practice of spreading investments among different types of mutual funds or securities such as stocks and bonds to help reduce the risk of being too concentrated in any one type of asset. Here are the keys to diversification:
Your portfolio should include an appropriate mix of the three major asset classes: stocks, bonds and money market instruments.
Choose mutual funds that combine different types of securities, such as large-capitalization and smaller cap stocks, with different investment styles like growth or value.
Use securities that represent different market sectors to avoid heavy concentration in any one industry (like technology).
Varying positions by geographic area and currency (international stocks) can offer further diversification to a portfolio otherwise concentrated in domestic securities. This is a good strategy for revisiting any portfolio drop with, regardless of market conditions. It can help re-position a portfolio to better weather future fluctuations.
Diversification is not something you do once and forget about. The natural cycle of investment returns requires a periodic re-balancing of every portfolio to control risk.
We would like to offer our assistance in reviewing your portfolio mix to ensure that you are taking advantage of this key investment strategy, and to help you ensure that you are still on track to achieving your objectives. If you’d like to meet to revisit your investment plan, or just want to ask questions, please contact our Credential Investment Representatives in our Wealth Management Department at 1.800.728.6440.
*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not insured nor guaranteed, their values change frequently and past performance may not be repeated.