How to Diversify Your Portfolio
Building a Balanced Portfolio
A well-diversified portfolio helps manage risk while maximizing potential returns. Here's how to create one:
Asset Allocation Strategies
- Determine your risk tolerance
- Choose an appropriate mix of stocks, bonds, and other assets
- Consider your investment timeline
- Account for your financial goals
Geographic Diversification
Spreading investments across different regions:
- Canadian markets
- U.S. markets
- International developed markets
- Emerging markets
Sector Diversification
Investing across different sectors:
- Technology
- Healthcare
- Financial services
- Consumer goods
- Energy and utilities