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Diversification and asset allocation

Important information - please keep in mind that the value of investments can go down as well as up so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Diversification for volatile markets

Read the video transcript

The performance of different asset classes will naturally vary over time and, as each asset has its own unique characteristics, wider market conditions and world events will affect them differently.

Holding a diverse range of assets in line with your goals and risk tolerance will help minimise the impact of a single asset class on your portfolio and will help take advantage of opportunities across the market.

Getting the assets right

Things to consider if you are investing for the long haul

Investing in assets with a higher potential for growth but greater risk may be a good idea, thanks to the potential of long-term growth and compounding.

Things to consider if you are nearing your goals

As you get closer to your investment goals, it’s often a good idea to reduce the risk in your portfolio to mitigate against sudden market movements when you need your money the most.

More about the main asset classes

Equities
Bonds
Commodities
Property
Cash

Investment ideas to prepare for volatility

Choose a risk level with Navigator

If you're not sure what to invest in, Navigator helps you choose a fund based on your risk preference.

The Fidelity Select 50 Balanced Fund

This fund has a medium-risk profile and a diversified spread of funds that invest in different asset classes, including bonds and gold.

Look for opportunities

Search through the thousands of investments we offer with our powerful investment finder tool.

Learn more about volatility

An intro to risk and volatility

Understanding the difference between volatility and risk can help you deal with unnerving markets.

Opportunity in uncertain times

Market volatility can feel like an investor’s worst nightmare, but if you take a few simple steps to prepare, you can keep a calm head when it arrives.

Explore regular saving

Making smaller investments at regular intervals can remove some of the worry about when to invest, and help you take advantage of changes in price.