Diversified Portfolio

It is always good to have a diversified portfolio. The key to managing your risks with investing is a little thing called diversification. Try to maintain a portfolio that represents all the major asset classes such as stocks, bonds, cash, real estate and gold in the mix. Don’t invest your entire money in one stock. The reason behind this is that if that stock performs bad in the market your entire money is gone, but if you have a diversified portfolio you still have your money safe in stocks that are performing better.