How do I diversify my investments?

Ultimately, learning how to diversify investments is a matter of balancing risk and reward—by choosing the right mix of investments, you’re giving your money the best possible chance to grow and compound over time. If you’re looking for a little more support, consider turning to a platform like Stash.

What is a good diversified portfolio?

Most well-diversified portfolios are a mix of stocks, bonds, and cash. And you can achieve proper diversification with just 3–5 investments. Plus, that's how several billionaire investors recommend you invest. Below is a complete overview of how to balance risk and reward, a look at asset classes, and five examples of diversified portfolios.

How does diversification affect your investment portfolio?

The net effect of diversification is slow and steady performance and smoother returns, never moving up or down too quickly. That reduced volatility puts many investors at ease. The three main general asset classes in an investment portfolio are stocks, bonds and cash.