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3 Tips to Diversify Your Investment Portfolio
By The Smart Investor  •  January 29, 2024
Imagine you love eating chicken rice, and you could eat it every day. You know all the best chicken rice stalls in town and which ones serve the most succulent chicken and tastiest chilli. However, if you only eat chicken rice and nothing else, you may miss out on other great Singaporean dishes, such as laksa, char kway teow, or satay. If you diversify your food choices and try different types of Singaporean cuisine, you will have a wider variety of flavours and textures to enjoy. Even if you have a particular favourite dish, you can still appreciate and enjoy the different tastes and experiences of other Singaporean foods. Similarly, investing all your money in one stock or one sector is like savouring just one dish or type of cuisine. It may prove profitable, but it also limits your exposure to other opportunities. By diversifying your investments across different stocks and sectors, you reduce the overall risk...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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