Episode 5 - What is a diversified portfolio

We’re often asked what do you mean by a diversified portfolio? Well today we’ll attempt to explain exactly that in plain English and debunk the common myths. A diversified portfolio means your money is invested in a variety of different asset classes, that way if one asset class performs poorly it doesn’t have as much of a negative impact on your wealth as it would if you only invested in that poorly performing asset class. Don’t put all your eggs in one basket is a phrase that sums up a diversified portfolio perfectly.