My glorious padlet by Hanna https://padlet.com/hanna_reker/cyubp2wmjn70 Made with a wink and a smile en-us 2016-12-11 17:44:38 UTC 2023-04-11 13:42:56 UTC hello@padlet.com Lesson 7.3 hanna_reker https://padlet.com/hanna_reker/cyubp2wmjn70/wish/143003495 Diversification]]> 2016-12-11 17:45:12 UTC https://padlet.com/hanna_reker/cyubp2wmjn70/wish/143003495 What is Diversification? hanna_reker https://padlet.com/hanna_reker/cyubp2wmjn70/wish/143003576 Diversion of assets is a smart way to invest. It helps minimize the risk of investing money. It means spreading your money across different investments in order to reduce the risk.
According to the book it states, “the goal of diversification is not to boost performance… But once you choose to target a level of risk based on your goals, time horizon, and tolerance for volatility, diversification may provide the potential to improve returns for that risk level” (Diversification pg12.) This means that by putting a lot of money into different investments, if one of the investments doesn't go well, you won't lose all your money.


]]> 2016-12-11 17:46:19 UTC https://padlet.com/hanna_reker/cyubp2wmjn70/wish/143003576 How to create a investment portfolio hanna_reker https://padlet.com/hanna_reker/cyubp2wmjn70/wish/143003631 In order to build a diversified portfolio, the book states, “you should look for assets, stocks, bonds, cash, or others- whose returns have not historically moved in the same direction, and, ideally, assets whose returns typically move in the opposite directions” (Diversification pg12.) ]]> 2016-12-11 17:47:07 UTC https://padlet.com/hanna_reker/cyubp2wmjn70/wish/143003631 Low, Medium and High Risk hanna_reker https://padlet.com/hanna_reker/cyubp2wmjn70/wish/143003655 In my imaginary portfolio my low risk investment could be in the Pimco High Yield Fund Institution. This company is doing well so if I put my money into it, there is a low risk that this company will lose my money. A medium risk investment I may put my money into could be BlackRock UK Income. A high risk investment I could put my money into is Atlas Financial Planning, this company can either grow tremendously or go downhill. If i would want to be a high risk investor i would probably need a lot of experience, according to the book it states, “typically a high risk investor would be someone who has very good knowledge of investments, who wants to achieve the biggest returns possible, or somebody with a high income or significant assets who can afford to take more risk” (Diversification pg11.)


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