I heard somewhere about portfolio of the USA millionaire and billionaire guys. Almost of them set thier asset allocation like this. Please see below.
stocks 35% ,properties 8% ,bonds 20%, funds 30% and cash 7%
The average investment return on this port around 10-15%
What do you think about that?
You see, summary they invest on the stock market 65%, directly on the stock market 35% and 30% by hedge fund around the world. There are many ways to diversify their investment portfolio, from asset class selection to investment style.
Diversification is a strategy that can be neatly summed up by the timeless adage “Don’t put all your eggs in one basket.” The strategy involves spreading your money among various investments in the hope that if one investment loses money, the other investments will more than make up for those losses.
The beginner like me , you can see more detail on this link
Beginners’ Guide to Asset Allocation, Diversification, and Rebalancing
Because achieving diversification can be so challenging. … Challenging….I like that, it’s so hard to make it done. however, i’m sure i can..some day…It’s me.