Investment Basics

Diversification: the key to managing risk

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Brian Bodell

Managing Director

brian.bodell@msrs.im
+44 (0)1624 697240
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Diversification: the key to managing risk

Smart investors have found ways to minimise risk and increase their chances for reward.

For example, by diversifying – spreading the money you invest over a variety of different kinds of investments – you can reduce the likelihood of being hurt by a downturn in the market for one investment type. If one investment is performing poorly, another may be performing well, since investments react differently to the same market conditions.

Mutual funds have become a popular choice for retirement plans because they spread risk across a number of investments. They pool money invested by many people, which is then combined and invested in a variety of securities by fund managers. Since your money is pooled with the money of thousands of other investors, the mutual fund is able to buy a much greater quantity of securities than any single investor could purchase on their own.

If you would like to find out more about our plans, please contact us, fill out an enquiry form or call on +44 (0)1624 697240

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If you want to find out more about Moore Stephens Retirement Solutions, please contact us, email at clientsupport@msrs.im, fill out our enquiry form or call on +44 (0)1624 697240


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