Diversification

arry

Registered User
Messages
47
Hi,

I may have some money to invest soon, and was thinking of putting into ETFs as the return on cash seems poor.

For instance if I had 300k would it be considered diversification if I put it into three or four different kinds of ETFs i.e. property / shares/ energy. Or would it still be invested in ETFs so little diversification?

Thanks
 
Hi
Diversification isn't achieved from buying products its a question of asset allocation.
The way your portfolio is split between cash, equities, bonds and real estate will determine around 90% of your expected return.
How you implement, i.e using ETFs, will determine your cost of investing, taxation, how you buy and sell, etc
Working with a competent adviser can add up to 3%pa to your annual returns compared to a DIY approach
 
Back
Top