Watch the video and learn how to reduce investment risks and select a strategy that fits with your goals.
Key learning points:
You can build a diversified portfolio by spreading your money across a variety of investments. It is important to do so because it's a good way of reducing the overall level of investment risk. That way, if some of your investments perform poorly, any losses could be offset by gains in your other investments.
It is possible to diversify within asset classes (for example by purchasing a variety of equities in different industries or in different countries). And you can diversify between asset classes (for example, by purchasing a mixture of low risk money market funds, bonds, and some higher risk equities). This is called asset allocation and the 'right mix' for you will be determined by your goals, risk profile, and investment horizon.
Design your own diversified portfolio or work with your AIA Financial Services Consultant to identify an asset allocation that best suits you.
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