How we invest

You have heard the saying “Don’t put all your eggs in one basket”. This means don’t concentrate all your prospects or resources in one thing or place, or you could lose everything.

Diversification is when you spread your investment risk by investing across different asset classes, sectors and markets. The theory goes that this will make your portfolio less vulnerable to swings in the market, so when one investment performs poorly, another could be doing well – smoothing out the return for your whole portfolio.