Diversification is about reducing risk by spreading your investments over different assets (equities, bonds, commodities, property and cash), sectors, funds, and markets.
This means you’re not dependent on any one company, fund or sector doing well as different assets perform differently at different times. If one of your investments is performing less well, others should be performing better.
You can achieve diversification in a number of ways:
When investing internationally changes in currency exchange rates may affect the value of an investment.
If you invest in a fund your money’s pooled together with other investors’. Each fund is large enough to diversify across hundreds and even thousands of individual companies and assets. What's more all the investment decisions are managed by leading investment experts.
The value of investments can go down as well as up and you may get back less than you invested. Fidelity Personal Investing only gives information about products and services and does not provide investment advice based on individual circumstances. If you are unsure of the suitability of an investment you should speak to an authorised financial adviser.
If you have any questions about any of our products and services – from choosing funds to managing your account – our UK-based customer service centre is waiting to take your call.
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