Diversified investments means a possible reduction of a chance of the overall portfolio losing by using a variety of investment tools and systems. In the case if the value of assets is not rising but falling, the risk of loss can be minimized.
Diversification is by far the best way to reduce investment risk. The basic principle of diversification is the absence of close relation and interaction of assets. This method works even in case if any of current assets is fully depreciated.
Very vivid illustration of the concept of diversified investments is saying, "Do not put all your eggs in one basket." If basket will fall, you may lose everything that you have in it. In case if you will put each egg into the different basket – you reduce the risk of losing everything at once.
FXFINPRO Capital asks you always to remember about even absolute minimal risks. Take your decisions consciously.
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