Diversification

Discussion in 'Exchange Traded Funds (ETFs)' started by arry, Jun 21, 2016.

  1. arry

    arry Registered User

    Posts:
    39
    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
     
  2. Marc

    Marc Frequent Poster

    Posts:
    795
    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