Why is investment diversification important?

Why is investment diversification important?
Diversification: What is it? Why is it important?
Mark Johnson, Chairman of Prime’s Investment Committee explains what diversification means for
an investment portfolio, and why it’s important.
Diversification is a strategy that can be neatly summed up by the timeless adage “Don’t put all
your eggs in one basket.” The strategy involves spreading your money among various investments in
the hope that if one investment loses money, the other investments will more than make up for those
losses.
Watch Mark’s video to Learn More:
Diversification: What is it? from Prime Financial Group on Vimeo.
Related Post: 3 Back to Basic Investment Rules
Disclaimer:
This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL
239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it.
This information does not take into account your objectives, financial situation or needs. Before
acting on this information, you should consider whether it is appropriate to your situation. It is
recommended that you obtain financial, legal and taxation advice before making any financial
investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal
information.