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Why do you need to diversify¹ your investment portfolio?

Amid market volatility, investors may make less optimal decisions driven by heightened emotions. To make more informed decisions, consider implementing strategies such as diversifying your portfolio through dollar-cost averaging, which helps mitigate the impact of market fluctuations. Investing in multiple asset classes can spread risk and achieve diversification in your portfolio.

Learn more about dollar-cost averaging, risk migration through a diversified asset portfolio, the importance of starting your investment early, the value of geographical diversification

1 Diversification does not guarantee investment returns and does not eliminate the risk of loss.

  • Having a long-term and regular investment helps generate potential optimal returns.
  • Invest a fixed amount regularly instead of trying to time the market.
  • Start investing early so that you can benefit from dollar-cost averaging over a longer investment period.
  • By diversifying across asset classes, industries or regions that are lowly or negatively correlated to help mitigate risk as well as tap the potential opportunities of different market scenarios.
  • Mutual funds comprise multiple investing styles, strategies and scopes. Their holdings could also cover dozens or even thousands of securities. Instead of directly investing in specific stocks or bonds, investors could consider accessing a diversified range of global markets and tap into potential opportunities at a lower average cost.
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