​​ How to diversify your investment portfolio Three main ru | 🔸MONETKA.BLOG🔸

​​ How to diversify your investment portfolio
Three main rules

Break down by assets

You need to diversify your portfolio by assets so that during periods of economic decline, your portfolio does not sink too much. Stocks, bonds, deposits, funds - these are the main instruments that are suitable for those who are relatively new to the stock market. You can figure them out quickly enough to make money, not lose money.

Double bottom. Why is it not always profitable to get on the fall?

At this time bonds will be good for you. They will generate a steady income. In this case, deposits can also be used. However, they often have lower yields than bonds. Both of these instruments are conservative and will not yield as high returns as stocks. But, they will help to protect your portfolio from high volatility.
If you want to keep it to a minimum, it is best to have about 50% of the bonds in your portfolio.

Split by sector

In addition to diversification by assets, it is also important to distribute the portfolio by sector. When some stocks fall, others rise. This will create balance in your portfolio and allow you to lose as little or no return as possible.