Magic word: diversification

Magic word: diversification. This difficult phrase is nothing but the pursuit of such a diversification of investments to reduce the risk of a slip-up. In the broader concept of diversification is to not put all your money to the funds, some hold on deposits. In a narrower concept, it means not to put all your money into one fund, but select at least two. The importance of geographic diversification means that you should - if possible - to choose such funds, one of which invests money in the U.S., and the second - abroad. But diversification is not only a suitable portfolio. It is also spreading the investment over time (regular payments instead of one-off). As you can see diversification in investing is so important that the greater number of meanings will be applied in practice, the safer for you.

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